ExlService initiated with a Hold at Jefferies

Jefferies analyst Surinder Thind initiated coverage of ExlService with a Hold rating and $33 price target. The analyst says current investors can benefit from favorable secular trends in analytics, a likely higher sustainable growth rate in BPO, and strong execution that is driving market share gains. However, for potential new investors, despite an increasingly attractive valuation, ExlService’s decelerating revenue growth “suggests near-term patience may be prudent,” the analyst tells investors in a research note.