Wedbush upgrades ExlService on shift to artificial intelligence

Wedbush analyst Moshe Katri upgraded ExlService to Outperform from Neutral with a price target of $40, up from $34. The “bullish” investor day articulated the company’s ongoing, three-year pivot to data, analytics and artificial intelligence, the analyst tells investors in a research note. The firm says the disclosures should remove ExlService from the “list of companies expected to be disrupted by AI”, and include it in the generative AI beneficiary bucket. It expects an acceleration in ExlService’s overall sales growth combined with both gross margin and adjusted EBIT margin expansion.