In a analysis notice printed on U.S. IT companies agency, Citi Analysis downgraded ExlService (NASDAQ:EXLS) from impartial to promote citing its premium valuation.
The financial institution additionally reduce the agency’s value goal from $150 to $134 and lowered its income estimates as a consequence of FX and a few incremental downturn conservatism layered in FY23.
Analysts wrote, “EXLS has executed properly post-pandemic given a stable surroundings for analytics and efficient expectations administration, particularly on the margin entrance…we search for this profit to peter out within the coming quarters and given EXLS’ costly ahead P/E of ~23x FY23 EPS, it must be a superb candidate for underperformance.”
Within the close to time period, Citi expects a slight prime and bottom-line beat relative to consensus from EXLS with development led by continued analytics energy. “We count on the corporate to barely enhance its 2022 outlook ranges as there’s much less of an FX headwind for EXLS than a few of its comps and we imagine that present administration has proven a observe document of offering barely conservative outlooks that it may well overachieve on and lift every quarter. So we really imagine our name works out over a multi-quarter interval,” analysts add.
Citi’s score is in distinction with SA Quant score of maintain, Wall St. analysts’ score of purchase. The financial institution additionally reduce targets on Genpact (G) and WNS Holding (WNS), however proceed to charge them as purchase.
ExlService shares have dropped 2% pre-market, however has climbed 35.35% over the previous 12 months.
Check out how the info analytics firm carried out in Q1