Oppenheimer Reiterates Outperform Rating, $32 PT for ExlService Holdings

In a company update published earlier today, Oppenheimer Holdings reiterated its Outperform rating and $32.00 price target for ExlService Holdings, Inc. EXLS. Oppenheimer went on to say “we believe EXLS continues to represent one of the better opportunities in the BPO sector with strong secular tailwinds, a healthy deal pipeline, low exposure to discretionary spending, below industry attrition and rising offshore penetration levels. EXL remains comfortable with its long-term road-map targeting multi-year revenue CAGR of 20-30% with existing clients contributing 13-17%, new clients 2-3% and acquisitions 5-10% (translating to $25-75M of capital deployed annually for acquisitions). We view the recent cautious FY12 outlook (although 24-27% FY12 growth outlook is nothing to sneer at) as a minor speed bump in its long-term growth story.” ExlService Holdings, Inc. closed yesterday at $25.26.