UPDATE: Jefferies Lowers PT on iSoftStone Holdings on Mixed Guidance

In a report published Monday, Jefferies reiterated its Buy rating on iSoftStone Holdings ISS, but lowered its price target from $10.00 to $8.00. Jefferies noted, “4Q revs/pro-forma op. margins were slightly above expectations, but higher than expected tax/interest expense led to a largely in-line EPS. FCF of $38.8M was strong, led by better cash collection post Huawei JV announcement. F13 pro-forma op. margin/EPS guidance were below expectations, due to expected JV formation expenses in 1H13, but strong F13 revs guidance, upbeat commentary and valuation keep us + on the stock.” iSoftStone Holdings closed on Friday at $5.50.