Citigroup Reiterates on ExlService Holdings Following Recent 3Q13 Earnings Call

Loading...
Loading...
In a report published Tuesday, Citigroup analyst Ashwin Shirvaikar reiterated a Buy rating $35.00 price target on
ExlServiceEXLS
. In the report, Citigroup noted, “During its recent 3Q13 earnings call, EXLS had indicated it had a Top 3 client that was close to a final decision on whether to walk away from EXLS. In an 8K filed after the close today, EXLS named the client (Travelers) and discussed the background on the client and the circumstances of the client loss. Travelers represented 9.6% of EXLS total revenues in 3Q-2013. Our view is that another vendor to whom the work can be transferred has not yet been identified, so there should be no material impact on calendar year 2013 revenues. While the company estimated a $14-$28 million impact (3%-6% of revenues) in 2014, that is an early guess given the above circumstance. BPO contracts tend to be remarkably sticky and so a much longer transition and a correspondingly smaller 2014 impact is quite possible – of course this would just prolong the ‘grow-over' agony.” ExlService closed on Monday at $29.07.
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorReiterationAnalyst RatingsAshwin ShirvaikarCitigroup
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...