Mayank Tandon, an analyst from Needham, reiterated the Buy rating on Exlservice Holdings. The associated price target remains the same with $55.00.
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Mayank Tandon has given his Buy rating due to a combination of factors that highlight Exlservice Holdings’ strong performance and promising outlook. The company reported impressive second-quarter results, surpassing expectations in both revenue and earnings. This success was driven by broad-based growth across segments, particularly in the high-value Data and AI segment, which saw a year-over-year increase of 17.4%.
Additionally, Exlservice Holdings demonstrated robust business development by signing 13 new clients in the second quarter, improving upon the previous quarter’s performance, and showing double-digit growth in its sales pipeline. Management’s decision to raise the fiscal year 2025 revenue guidance, supported by a strong sales pipeline, further underscores their confidence in the company’s future. With shares trading at an attractive valuation and the company’s growth outpacing its peers, Tandon views the risk-reward profile as favorable, reinforcing his Buy recommendation.
Based on the recent corporate insider activity of 59 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.