Barrington Maintains a Buy Rating on Virtusa Corp

Barrington analyst Vincent Colicchio maintained a Buy rating on Virtusa Corp (NASDAQ: VRTU) today and set a price target of $55. The company’s shares opened today at $48.25.

Colicchio wrote:

“We believe Virtusa continues to gain share due to its relatively high exposure and strengths in digital solutions and platform rationalization/consolidation. On the former, digital solutions revenue was approximately 1/3 of revenue in fiscal 2018 and should grow further due to the acquisition of eTouch (in March 2018). The latter capability is helping the company to achieve healthy growth in non-digital revenue, a contrast to offshore peers, which have struggled in that category. Virtusa can significantly reduce legacy IT costs through eliminating duplication, which is de-emphasized by offshore peers because it would eliminate their maintenance revenue stream.”

According to TipRanks.com, Colicchio is a 3-star analyst with an average return of 6.2% and a 56.1% success rate. Colicchio covers the Technology sector, focusing on stocks such as Sykes Enterprises Inc, Exlservice Holdings, and Convergys Corp.

Currently, the analyst consensus on Virtusa Corp is Strong Buy and the average price target is $58.20, representing a 20.6% upside.

In a report released yesterday, Cantor Fitzgerald also maintained a Buy rating on the stock with a $60 price target.

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Virtusa Corp’s market cap is currently $1.42B and has a P/E ratio of 267.94. The company has a Price to Book ratio of 2.93.

Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2018, Ranjan Kalia, the EVP & CFO of VRTU sold 13,865 shares for a total of $698,364.

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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 (ERP) 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.