ExlService Holdings: Strong Market Position and AI Strategy Drive Buy Rating

William Blair analyst Maggie Nolan has maintained their bullish stance on EXLS stock, giving a Buy rating today.

Maggie Nolan has given her Buy rating due to a combination of factors that highlight ExlService Holdings’ strong position in the market. The company’s expertise in data management and domain knowledge is well-aligned with the growing adoption of generative AI, which is expected to significantly expand their market opportunities. ExlService’s strategic focus on developing industry-specific large language models (LLMs) further underscores their capability to deliver high-precision solutions, enhancing their competitive edge.
Moreover, ExlService has demonstrated robust business momentum with recent commercial successes, including ten high-quality new deal wins in the first quarter. The company’s medium-term financial targets indicate expectations for double-digit revenue growth, incremental operating margin expansion, and earnings per share growth that surpasses revenue growth. These factors, combined with the potential for upside if ExlService successfully executes its AI strategy, contribute to Maggie Nolan’s positive outlook and Buy rating for the stock.

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