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UPDATE: J.P. Morgan Downgrades Virtusa Corporation to Neutral on Full Valuation

Related VRTU
UPDATE: Noble Financial Upgrades Virtusa
Virtusa Prices 2.3M Share Offering at $34.50/Share

In a report published Monday, J.P. Morgan analyst Puneet Jain downgraded the rating on Virtusa Corporation (NASDAQ: VRTU) from Overweight to Neutral, but raised the price target from $22.00 to $25.00.

In the report, Jain noted, “We are downgrading VRTU from Overweight to Neutral as we think the 46% stock rally this year (vs. S&P 500 up 9%) already prices in much of the earnings growth upside we expect in FY14 (initial guidance to be issued in early May). Moreover, unlike in the previous years, the company's large clients may not be a significant driver of its overall growth next year, potentially triggering growth slowdown in FY14. However, VRTU's growing pipeline and margin expansion potential should still result in solid earnings growth this year (we est. 30%), keeping us at Neutral.”

Virtusa Corporation closed on Friday at $23.97.

Latest Ratings for VRTU

DateFirmActionFromTo
Sep 2014JP MorganInitiates Coverage onNeutralOverweight
Aug 2014Maxim GroupInitiates Coverage onBuy
Aug 2014Noble FinancialUpgradesHoldBuy

View More Analyst Ratings for VRTU
View the Latest Analyst Ratings

Posted-In: J.P. MorganAnalyst Color Downgrades Analyst Ratings

 

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