Needham & Company Maintains a 'Buy' on Syntel, Inc. (SYNT); Raising EPS to High End of Range
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Price: $40.99 --0%
Rating Summary:
1 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Syntel, Inc. (NASDAQ: SYNT) price target of $70.00.
Analyst, Mayank Tandon, said, "SYNT reported mixed 2Q results with revenue coming in a shade light but a favorable impact from the weak rupee and lower opex levels boosting margins and driving a sizable beat on the bottom line. Management reduced revenue guidance for the full year, citing delays in customer decision times, but increased margin and EPS guidance, mainly to reflect the sharp depreciation in the rupee and lower opex levels. Healthcare was the soft spot in 2Q, banking and financial services grew at a healthy clip, and retail and insurance were the standout performers. Headcount growth was muted but management maintained its hiring plans from campuses, implying it expects revenue growth to pick up momentum exiting FY12 as the macro pressures abate and the regulatory changes in the healthcare and financial services sectors are implemented post the presidential elections. We are leaving our below consensus revenue estimate intact, but raising our EPS estimate to the high end of the range."
FY12 EPS estimate raised from $3.63 to $4.00 and FY13 from $4.11 to $4.25.
For an analyst ratings summary and ratings history on Syntel, Inc. click here. For more ratings news on Syntel, Inc. click here.
Shares of Syntel, Inc. closed at $59.54 yesterday.
Analyst, Mayank Tandon, said, "SYNT reported mixed 2Q results with revenue coming in a shade light but a favorable impact from the weak rupee and lower opex levels boosting margins and driving a sizable beat on the bottom line. Management reduced revenue guidance for the full year, citing delays in customer decision times, but increased margin and EPS guidance, mainly to reflect the sharp depreciation in the rupee and lower opex levels. Healthcare was the soft spot in 2Q, banking and financial services grew at a healthy clip, and retail and insurance were the standout performers. Headcount growth was muted but management maintained its hiring plans from campuses, implying it expects revenue growth to pick up momentum exiting FY12 as the macro pressures abate and the regulatory changes in the healthcare and financial services sectors are implemented post the presidential elections. We are leaving our below consensus revenue estimate intact, but raising our EPS estimate to the high end of the range."
FY12 EPS estimate raised from $3.63 to $4.00 and FY13 from $4.11 to $4.25.
For an analyst ratings summary and ratings history on Syntel, Inc. click here. For more ratings news on Syntel, Inc. click here.
Shares of Syntel, Inc. closed at $59.54 yesterday.
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