Mayank Tandon, an analyst from Needham, maintained the Buy rating on WNS (WNS – Research Report). The associated price target was lowered to $60.00.
Mayank Tandon has given his Buy rating due to a combination of factors, including WNS’s strong fourth-quarter performance and the company’s ability to maintain robust demand amidst various challenges. Notably, WNS has shown effective sales execution, which has helped to mitigate client-specific difficulties and the impact on shorter-term project-based work. Despite the forecast for slower revenue growth in the forthcoming fiscal year, which accounts for some headwinds such as client ramp-downs and volume reductions, the firm managed to secure nine new clients and expanded its business with forty existing clients. This expansion is indicative of WNS’s solid competitive standing and suggests potential for growth reacceleration in the future.
Additionally, WNS’s announcement of a significant share repurchase plan, valued at up to $150 million, underpins Tandon’s positive outlook. He anticipates that this move could support earnings per share (EPS) and enhance the company’s valuation. While there has been a slight adjustment to the target price, dropping it to $60, the overall assessment remains optimistic, reflecting confidence in WNS’s strategic positioning and expected performance trajectory over the next fiscal years. The company’s recent client gains and share buyback initiative paint a picture of a firm that is actively managing its growth prospects and shareholder value.
In another report released on April 22, Citi also maintained a Buy rating on the stock with a $62.00 price target.
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WNS (WNS) Company Description:
WNS (Holdings) Ltd. is a global business process management company. It offers comprehensive data, voice, analytical and business transformation services with a blended onshore, nearshore and offshore delivery model. The company operates through two segments: WNS Global BPM and WNS Auto Claims BPM. The WNS Global BPM is delivered out of its delivery centers in China Costa Rica, India, the Philippines, Poland, Romania, South Africa, Sri Lanka, the United Kingdom and the U.S., as well as its subcontractors delivery center in China. This segment includes all of the company’s business activities with the exception of WNS Auto Claims BPM. The WNS Auto Claims BPM segment is automobile claims management business which is primarily based in the United Kingdom and is part of its insurance business unit. WNS (Holdings) was founded by Alan Stephen Dunning, David Charles Tibble and Neeraj Bhargava on February 18, 2002 and is headquartered in Mumbai, India.
