EXLS - Jefferies initiates coverage on ExlService Holding at 'hold'; shares up
2023-09-19 09:08:26 ET
- Jefferies on Tuesday initiated coverage on BPO focused IT services firm ExlService Holdings ( NASDAQ: EXLS ) at 'hold', citing strong analytics offerings, which should continue to drive growth higher over the long-term.
- Brokerage however says, in the near term, it anticipate the segment will continue to see growth decelerate as clients remain cautious of discretionary spend.
- As a result, expects revenues to be relatively flat q/q in this segment for the next 2-3 quarters before it begins to accelerate in the first half of 2024.
- Brokerage says, the BPO business should grow faster than anticipated, and boost margins in the process.
- On AI, we see investor concerns as overly pessimistic - brokerage
- Shares up +0.21% to $29.15 in premarket trading.
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Jefferies initiates coverage on ExlService Holding at 'hold'; shares up