Oppenheimer Has Perform Rating On Syntel (SYNT)

Oppenheimer & Co. has a Perform rating on shares of Syntel SYNT. In a note to clients, Oppenheimer writes, "Syntel reports 1Q11 results tomorrow April 21 before the market opens. We believe 1Q is likely to be largely in line with consensus of $145M and $0.65 with a slight upward bias. We are slightly raising our top-line estimates from $144M to $145M for 1Q11 and $630M (high end of management's guidance) from $623M for FY11 and $718M from $711M for FY12 based on checks and positive market commentary from various IT offshoring vendors. With an improving demand environment, we are becoming incrementally more positive on SYNT. However, given current valuation levels of 20x '11E P/E and near-term margin headwinds (growth investment, wage inflation, and rupee appreciation), we remain at Perform." Shares of SYNT are up 95 cents to $55.48, a gain of 1.7%.