In a report released today, Vincent Colicchio from Barrington maintained a Buy rating on Virtusa Corp (NASDAQ: VRTU), with a price target of $64. The company’s shares opened today at $52.81.
Colicchio observed:
“We expect the company to continue to gain share due to their relatively high exposure and strength in digital solutions and their platform rationalization/consolidation capabilities in legacy IT services. Digital solutions revenue grew from approximately 1/3 of revenue in fiscal 2018 to approximately 40% in fiscal Q1/19 due to the acquisition of eTouch (in March 2018), which should improve organic growth potential. The company’s platform rationalization/consolidation capabilities are helping it achieve healthy growth in non‐digital services. This represents a sharp contrast to peers, which have struggled. Virtusa can significantly reduce client’s legacy IT costs by eliminating duplication, which is de‐emphasized by many offshore peers because it would cannibalize their maintenance revenue stream.”
According to TipRanks.com, Colicchio is a 3-star analyst with an average return of 5.6% and a 65.0% success rate. Colicchio covers the Technology sector, focusing on stocks such as Sykes Enterprises Inc, Exlservice Holdings, and Convergys Corp.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Virtusa Corp with a $63.67 average price target.
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The company has a one-year high of $58.60 and a one-year low of $34.79. Currently, Virtusa Corp has an average volume of 124.6K.
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Virtusa Corp. engages in the provision of information technology consulting, technology implementation, and application outsourcing services. Its services includes business process management, application services, infrastructure management, enterprise information management, independent validation services, platforming, mobility, enterprise resource planning, business consulting, customer experience management, and cloud. The company was founded by Krishan A. Canekeratne, Tushara Canekeratne and John Gillis in November 1996 and is headquartered in Westborough, MA.
