Mayank Tandon, an analyst from Needham, reiterated the Buy rating on Exlservice Holdings. The associated price target was lowered to $40.00.
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Mayank Tandon has given his Buy rating due to a combination of factors, including Exlservice Holdings’ strong fourth-quarter performance and broad-based momentum across its businesses. The company delivered revenue and earnings above expectations, with its Data and AI division growing roughly 21% year over year in constant currency and now accounting for the majority of total sales, underscoring its leadership in analytics-driven services.
Management’s outlook for fiscal 2026 calls for high single- to low double-digit organic growth in constant currency, supported by a robust backlog and a significantly strengthened new-business pipeline, as reflected in a record level of contract wins in the latest quarter. Tandon also highlights that the stock trades at an attractive ex-cash valuation relative to its growth profile and peers, and despite trimming the price target to $40 due to sector-wide multiple pressure, he believes the combination of sustained double-digit growth, AI tailwinds, and favorable risk-reward justifies a continued Buy recommendation.
According to TipRanks, Tandon is an analyst with an average return of -6.0% and a 35.01% success rate. Tandon covers the Technology sector, focusing on stocks such as Agilysys, Exlservice Holdings, and SS&C Technologies Holdings.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $54.00 price target.