Exlservice Holdings, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Bryan Bergin from TD Cowen reiterated a Buy rating on the stock and has a $52.00 price target.
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Bryan Bergin has given his Buy rating due to a combination of factors that highlight Exlservice Holdings’ strong growth potential and financial health. The company is experiencing sustainable double-digit revenue growth, driven by its Data & AI-led Services, which are becoming a larger portion of its total revenue. This growth is expected to continue as clients become more comfortable with GenAI and agentic scaling, leading to increased client engagement and strategic work.
Bergin also points out the company’s ability to expand its gross margins through a favorable mix shift, which is contrary to the trend seen in many other service companies. Additionally, Exlservice Holdings is demonstrating robust free cash flow generation and effective net working capital management, allowing for active share repurchase programs. These factors collectively support Bergin’s confidence in the company’s future performance and justify the Buy rating.