J.P. Morgan Thinks Luxoft Holding’s Stock is Going to Recover

By Austin Angelo

J.P. Morgan analyst Alexei Gogolev reiterated a Buy rating on Luxoft Holding (NYSE: LXFT) today and set a price target of $80. The company’s shares opened today at $50.50, close to its 52-week low of $46.58.

Gogolev noted:

“weak performance of top-3 accounts management kept its FY17E and FY18E guidance unchanged indicating improving ramp-up of high- potential accounts and good cost control. At ~13x CY17E P/E the stock is trading at 20%-25% discount to EPAM and key peers, which we believe is unwarranted. We reiterate a high-conviction OW rating on LXFT shares and look for management comments on today’s call regarding the allocation of UBS IT budget following the arrival of a new CIO.”

According to TipRanks.com, Gogolev is a 4-star analyst with an average return of 11.2% and a 50.0% success rate. Gogolev covers the Technology sector, focusing on stocks such as Millicom International Cellular SA, Mobile Telesystems, and Epam Systems Inc.

Luxoft Holding has an analyst consensus of Hold, with a price target consensus of $65.

Luxoft Holding’s market cap is currently $1.62B and has a P/E ratio of 23.95. The company has a book value ratio of 5.0618.

Luxoft Holding, Inc. operates as a provider of software development services and information technology solutions to a global client base consisting of multinational corporations. The company’s services include software development and support, product engineering and testing, and technology consulting. It provides its services to six industry verticals: Financial services, Travel and aviation, Technology, Telecom, Automotive and transport and Energy. The company was founded in March 2000 and is headquartered in Zug, Switzerland.