UPDATE: Bank of America Reiterates Neutral Rating, Raises PT on ExlService Holdings on In-Line 4Q Revenue

In a report published Monday, Bank of America reiterated its Neutral rating on ExlService Holdings

, and raised its price target from $28.00 to $32.10. Bank of America noted, “4Q revenue was in-line with our estimate while PAT was ~2% higher on lower tax. CY13 organic rev guidance of ~8-10%yoy was also as expected with slower growth in outsourcing supplemented by continuing traction in transformation services. Transitioning out of low margin contracts is likely to help improve gross margin for CY13/14 and leads us to raise EBITDA est by 6%/5%. We raise PO led by estimate revision and roll forward to CY14. Valuation of 9x CY14E EV/EBITDA (in-line with average over last 5years) limits further upside and underpins our Neutral stance. Key upside risks: Faster than expected closure of large deals that have recently entered EXL's pipeline and accretive acquisitions.” ExlService Holdings closed on Friday at $31.81.