Needham & Company Raises Price Target on Virtusa (VRTU) Following Solid 2Q Earnings

Needham & Company reiterated a Buy rating on Virtusa (NASDAQ: VRTU), and raised the price target to $65.00 (from $55.00), following the company's 2Q earnings report. Revenue rose 6% Q/Q and 21% Y/Y to $143MM, above consensus ($141.9MM). VRTU posted $0.50 in non-GAAP EPS, $0.02 above the Street.

Analyst Mayank Tandon commented, "VRTU delivered a solid 2Q, comfortably beating on revenue and EPS. Management tightened the FY16 revenue guidance range on both revenue and EPS, with no material change to the mid-point. Strength was broad based, with all the major verticals and regions growing. We were encouraged to hear the banking segment has improved and the deal pipeline remains strong. We are fine-tuning our FY16 and FY17 estimates. With a strong deal pipeline, about 2x from a year ago, and larger deals both in terms of size and scope, we believe there could be upside to our estimates. We are raising our target to $65 and reiterating our BUY rating."

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

Shares of Virtusa closed at $57.55 yesterday.

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