JP Morgan Comments on WNS Holdings After F1Q Results

J.P. Morgan has published a report on WNS Holdings Ltd.

reviewing F1Q results. In the report, J.P. Morgan wrote, "Yesterday, WNS reported solid F1Q results, which backed with positive management commentary, raised hopes of lasting returns on the firm's restructuring efforts. We were encouraged by the results and tone, but we'd like to see a string of improving results before we turn more constructive on the stock. Moreover, some of the upside could also be attributed to overall improvement in the offshore BPO industry, but that should not take the credit away from WNS management. The company remains optimistic it can grow inline with peers in FY13 (March ending) after years of underperformance. Overall, we think WNS is making the right moves, but patience is required, which is why we are incrementally more positive on WNS, but remain UW (given its continued slower than industry average growth, at least over the near term)." J.P. Morgan rated WNS Holdings Underweight with a price target of $11.00. WNS Holdings Ltd. closed Thursday at $10.67.