UPDATE: Oppenheimer Downgrades iGATE Corporation to Perform, Removes PT Following CEO Termination

In a report published Wednesday, Oppenheimer analyst Glenn Greene downgraded the rating on iGATE IGTE from Outperform to Perform, and removed the $22.00 price target.

In the report, Oppenheimer noted, “Following the termination of Phaneesh Murthy, CEO of IGTE, we are downgrading IGTE from Outperform to Perform and removing our $22 price target. Mr. Murthy was instrumental in IGTE's growth strategy, the Patni integration, and we suspect key customer relationships. He will not easily be replaced, and accordingly we anticipate uncertainty will cloud the shares over the intermediate term until a new CEO is hired and his strategic vision is communicated. Also, management indicated that a large $200M+ deal, which previously was delayed, has now been "shelved." IGTE's other large deal remains on track, and management suggests its pipeline remains strong. Valuation appears attractive at <6x FY14E EBITDA, although business risk is now substantially increased, in our view.”

iGATE closed on Tuesday at $14.82.