UPDATE: Stifel Reiterates Buy Rating, Raises PT on Sapient Corporation Following 2Q Results Report

In a report published Wednesday, Stifel analyst David Grossman reiterated a Buy rating on

, and raised the price target from $16.00 to $18.00. In the report, Stifel noted, “Sapient reported last night after the close. Revenue of $314mn exceeded guidance of $300-310mn, and consensus of $306mn and pro forma EPS of $0.16 exceeded consensus of $0.11. SapientNitro (digital segment, 63% of revenue) grew 10% y/y, up modestly from the 9% growth in 1Q against a similar comparison. Global markets grew 23%, also in line with 1Q growth. Management indicated offline that the upside in the quarter (versus guidance) was driven more by the Nitro segment; backlog converted at a faster pace than prior quarters as economic stability in the US improved. Despite the revenue and EPS beat, management increased guidance only modestly. They increased 2013 revenue growth guidance from 10% to 11%, but maintained pro forma operating margin guidance at 12.8%, or flat y/y. They also provided 3Q guidance of $318mn-$325mn (13.5-15.0% pro forma operating margin), which implies flattish revenue and EPS in 3Q and 4Q. The revenue guidance looks flat out low, unless 2Q had some non recurring revenue; they attributed the flattish margins to underperformance in the Asian markets.” Sapient Corporation closed on Tuesday at $13.63.