In a report released today, Vincent Colicchio from Barrington maintained a Buy rating on Virtusa Corp (NASDAQ: VRTU), with a price target of $55. The company’s shares opened today at $51.04, close to its 52-week high of $52.88.
“We will update our earnings model once we receive more details on the acquisition. Recommendation: Our investment rating on VRTU stock is OUTPERFORM and our 12‐ month price target is $55. Our price target is based on 13.6x our calendar 2018 adjusted EBITDA forecast of $121.3 million less net debt and minority interest of $39.4 million. Company Description Virtusa is a global provider of information technology ( IT) consulting and outsourcing services that accelerate business outcomes for Global 2000 companies and leading software vendors in banking/financial services, insurance, healthcare, telecommunications, technology and media/entertainment. The company helps clients address the dual challenge of growing revenue while improving IT cost efficiencies. Virtusa delivers services across the IT lifecycle, including consulting, solution design, technology selection, implementation, testing and maintainence.”
According to TipRanks.com, Colicchio is a 3-star analyst with an average return of 10.5% and a 60.9% success rate. Colicchio covers the Technology sector, focusing on stocks such as CMTSU Liquidation Inc, Sykes Enterprises Inc, and Exlservice Holdings.
Currently, the analyst consensus on Virtusa Corp is Strong Buy and the average price target is $58.17, representing a 14.0% upside.
In a report released today, Wedbush also maintained a Buy rating on the stock with a $60 price target.
The company has a one-year high of $52.88 and a one-year low of $25.72. Currently, Virtusa Corp has an average volume of 207K.
Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VRTU in relation to earlier this year. Most recently, in December 2017, Rowland T. Moriarty, a Director at VRTU bought 15,583 shares for a total of $169,469.
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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.