Exlservice Holdings: Strategic AI Focus and Growth Prospects Justify Buy Rating

Needham analyst Mayank Tandon reiterated a Buy rating on Exlservice Holdings (EXLS – Research Report) today and set a price target of $55.00.

Mayank Tandon has given his Buy rating due to a combination of factors that highlight Exlservice Holdings’ strategic focus on artificial intelligence. The company’s recent investor strategy update emphasized its commitment to leveraging AI to enhance service delivery across key sectors such as insurance, healthcare, and banking.
Furthermore, Exlservice Holdings has reaffirmed its medium-term targets, which include double-digit revenue growth driven by AI innovations and an expanding total addressable market. The company also anticipates steady margin expansion and healthy earnings per share growth, which is expected to outpace revenue growth. Given Exlservice Holdings’ strong competitive position and potential to exceed market expectations, Tandon remains optimistic about the stock’s prospects, thus maintaining a Buy rating.

In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $52.00 price target.

Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EXLS in relation to earlier this year.