William Blair & Co. Reiterates Outperform on Genpact Limited (G)

William Blair & Co. is out with a research report this morning, where it reiterates its Outperform rating on Genpact Limited G; it did not provide a price target for the stock. The WB analysts cited the company’s recent earnings report, which included an increase in revenues of 13% year over year. This was in-line with WB’s estimates and slightly above the Street. Note that the company does not issue quarterly guidance. The WB analysts noted the company’s lower adjusted operating margin (15% versus 18% year over year and 15% versus 15.20% sequentially). They suspect that “foreign exchange was the primary driver behind the decline in adjusted operating margin, as the rupee appreciated 4% during the quarter and the company had to pay settlement charges on its forward contracts, impacting” As for stock performance, the WB analysts believe that the stock will trade down on the report, but that they would be buyers on any weakness given that, due to Genpact’s value proposition, scale, and reputation, revenue growth should accelerate into the second half of 2010 and into 2011.