WNS, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Bryan Bergin from TD Cowen maintained a Hold rating on the stock and has a $76.50 price target.
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Bryan Bergin has given his Hold rating due to a combination of factors surrounding the acquisition of WNS by Capgemini. The transaction, valued at $76.50 per share, represents a premium over recent trading prices and implies a forward price-to-earnings ratio slightly above historical averages. This suggests that the current valuation is fair, reflecting the strategic benefits Capgemini sees in WNS’s industry expertise and process knowledge.
Furthermore, the acquisition is expected to bring revenue and cost synergies, enhancing Capgemini’s business capabilities and market position. However, the deal’s completion is contingent upon shareholder and regulatory approvals, which introduces some uncertainty. Given these considerations, Bergin’s Hold rating reflects a balanced view of the potential benefits and risks associated with the acquisition, suggesting that the stock is fairly valued at present.
According to TipRanks, Bergin is a 4-star analyst with an average return of 3.2% and a 50.43% success rate. Bergin covers the Technology sector, focusing on stocks such as Genpact, Accenture, and Exlservice Holdings.