Cantor Fitzgerald Believes WNS Limited (NYSE: WNS) Still Has Room to Grow

By Carrie Williams

In a report released today, Joseph Foresi from Cantor Fitzgerald maintained a Buy rating on WNS Limited (NYSE: WNS), with a price target of $38. The company’s shares opened today at $34.05, close to its 52-week high of $34.20.

Foresi observed:

“WNS remains a growth story. The pipeline remains healthy, in our view, with promising recent client additions. Industry penetration rates remain low. We expect a high-single-to-low-double-digit industry growth rate over the medium term. WNS’s initial constant currency, organic growth rate guidance at the midpoint calls for 10% growth (vs. +8% for industry) with 90% visibility. Capability-focused acquisitions, including those of HealthHelp and Denali, are expected to add 12% y/y to growth in FY18 (ending March 2018). We believe the integration is off to a good start and that there is a bias to the upside. We note the likelihood of ongoing share repurchases.”

According to TipRanks.com, Foresi is a top 100 analyst with an average return of 12.6% and a 84.6% success rate. Foresi covers the Technology sector, focusing on stocks such as Automatic Data Processing, Fidelity National Info, and DXC Technology Company.

Currently, the analyst consensus on WNS Limited is Strong Buy and the average price target is $38, representing an 11.6% upside.

In a report issued on June 14, Cowen & Co. also upgraded the stock to Buy with a $38 price target.

Based on WNS Limited’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $161 million and GAAP net loss of $5.04 million. In comparison, last year the company earned revenue of $146 million and had a net profit of $12.03 million.

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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.