Needham & Company Upgrades Exlservice (EXLS) to Buy

Needham & Company upgraded Exlservice (NASDAQ: EXLS) from Hold to Buy with a price target of $56.00, saying the risk-reward is favorable following Q4 results.

Analyst Mayank Tandon commented, "EXLS reported upside 4Q results on the back of broad-based strength to finish FY15 on a strong note. Management introduced FY16 guidance that is in line with market expectations and calls for another year of solid double-digit growth combined with operating margin expansion. We are raising our FY16 estimates to near the high-end of the EPS guidance range and also building in a strong growth outlook for FY17. We were encouraged to see the strong pace of deal signings in 4Q and through FY15, which should set up EXLS to deliver upside results over FY16 and into FY17. With potential for upside to our and consensus estimates and the stock trading at a reasonable 15x ex-cash our FY17 EPS estimate, we believe the risk-reward is favorable and we are upgrading EXLS to a BUY and establishing a $56 target."

For an analyst ratings summary and ratings history on Exlservice click here. For more ratings news on Exlservice click here.

Shares of Exlservice closed at $45.18 yesterday.

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