UPDATE: JP Morgan Downgrades ExlService Holdings to Neutral on Headwinds to Growth

JP Morgan downgraded ExlService Holdings

from Overweight to Neutral but raised its price target from $27 to $31. JP Morgan noted, "While we expect continued improvement in WNS's growth profile, we see mild headwinds to EXLS's 2012 growth rate. EXLS continues to experience delays in signing large deals this year, and we believe the longer new deals are delayed the harder it will be for the company to produce upside to FY13 growth, and our prior thesis was partly predicated on EPS upside potential. While the company's transformation business nicely rebounded from 1Q disappointment, and recently won strategic client should provide a nice reference account for EXLS to scale higher, we note such spend is more tied to clients' discretionary spending." ExlService Holdings closed at $26.21 on Friday.