Bank of America Maintains Buy on Genpact after meeting with CEO

Bank of America has published a research report on Genpact G after meeting with company CEO Tiger Tyagarajan. In the report, Bank of America writes, "Over the past 8 months, company has stepped-up investments into hiring key account managers and especially in recruiting “hunters” for gaining entry into new accounts. 50% of the company's leadership team is now based near client locations vs. a much smaller number earlier. It has also completed the integration of client engagement managers into a vertical or “industry” focused structure. CEO expects sales investments to start yielding results in another 2-3 quarters. S&M expense could increase to 6% of sales (vs. ~5% currently) while op margin is likely to stay flat over next 1-2years, post which there could be an upward bias." Bank of America maintains its Buy rating and $18 price objective on Genpact, which is currently trading up $0.04 from yesterday's $15.86 closing price.