UPDATE: Morgan Stanley Reiterates Overweight Rating, Lowers PT on Genpact Limited as Risk-Reward is Favorable After Pullback

In a report published Friday, Morgan Stanley analyst Vipin Khare reiterated an Overweight rating on

, but lowered the price target from $21.00 to $18.00. In the report, Morgan Stanley noted, “Large size and low penetration of the global BPO market are positives. Management sounded positive about its pipeline, but said that deal closures are taking longer than expected. The stock is down 11% since its Dec-13 quarter results, vs. +3% for the NYSE composite index. Based on our revised estimates of adjusted EPS, P/E is 15x for CY14 and 13x for CY15e, against a CY14e-16e earnings CAGR of 16%. We expect CY14 to be another year of investment – but once it starts yielding results, revenue growth could accelerate with improved margins. We now forecast muted revenue growth of ~5% in CY14e but expect growth rates to improve in 2015e.” Genpact Limited closed on Thursday at $15.44.