J.P. Morgan Overweight On VanceInfo

J.P. Morgan Chase & Co. has an Overweight rating and a $38 price target on shares of VanceInfo (NYSE: VIT).

In a note to investors, J.P. Morgan writes, "VIT expects their margins to remain steady around CY10 levels, although management also wants some flexibility of modestly lowering margins to drive revenue growth. As such, we believe the company's guidance of 17% margins in CY11 (down 50bps y/y) is likely conservative and includes some buffer against any unknown margin headwinds. Finally, VIT will continue to invest in its sales and marketing function, and hire senior level personnel to drive revenue growth."

Shares of VIT lost 45 cents yesterday to close at $25.80, a loss of 1.7%.