Citigroup Raises PT On VanceInfo Technologies To $46

Citigroup has published a research report on VanceInfo Technologies (NYSE: VIT) after the company reported a solid 4Q with estimates coming in above consensus.

In the report, Citigroup writes "We view FY2011 guidance of 28% top-line growth as conservative and would not be surprised if VIT revises its forecast later in the year as it gets better visibility on some of the project ramps. Looking forward, besides the financial services sector, which will likely drive faster growth, we believe sectors such as travel, telecom, transportation and energy also have prospects to bring in solid growth. VIT is also actively evaluating the M&A pipeline but we expect will maintain a prudent approach on valuation and synergies. We remain positive on the growth outlook for VIT, maintain Buy (1L) and adjust TP to US$46, based on 38x 2012E (rolling forward) non-GAAP EPADS of US$1.21."

Citigroup maintains its Buy rating and has raised the price target from $41 to $46.

VanceInfo Technologies closed yesterday at $33.20.