UPDATE: Oppenheimer Raises PT on ExlService Holdings Following Investor Day

In a report published Monday, Oppenheimer reiterated its Outperform rating on ExlService Holdings EXLS, and raised its price target from $32.00 to $34.00. Oppenheimer noted, “Following better than expected Dec-qtr results, EXLS hosted an upbeat Investor Day in New York highlighting its multi-year growth strategy in a large and highly under-penetrated target market. Management's tone was positive on: 1) multi-year revenue CAGR of 20-30% through organic/inorganic growth; 2) growth opportunities in Insurance and Healthcare verticals; 3) strong momentum in Analytics; 4) improving client metrics both in number and deal-sizes; 5) continued expansion of its global footprint in the Philippines. With strong Dec-quarter results, healthy pipeline, rising offshore penetration, and the secular growth nature of the BPO industry we reiterate our Outperform on EXLS and raise our PT to $34 from $32 which equates to 19x FY13E and 16x FY14E.” ExlService Holdings closed on Friday at $31.81.