UPDATE: J.P. Morgan Raises PT on Syntel on Updated Estimates

In a report published Monday, J.P. Morgan analyst Tien-tsin Huang reiterated a Neutral rating on Syntel

, and raised the price target from $64.00 to $69.00. In the report, Huang noted, “First, recent appreciation in USD vs. other currencies will hurt reported growth rates this year, assuming current rates hold. We also estimate C1Q13 had 3% fewer billing days than last year's, which should create growth headwinds in C1Q and tailwinds in C2Q for IT services firms. We believe the trend should be incrementally positive for stocks that issue quarterly guidance (i.e. where Street estimates likely reflect 1Q headwinds, but not 2Q tailwinds). Finally, H1b visa's annual cap was hit within the first week this year, but we do not view the news as an indicator of demand. Overall, these trends (FX) will hurt WNS the most, while potential solid ramp in 2Q revenue growth will be positive for CTSH and VRTU.” Syntel closed on Friday at $67.26.