Digital BPM Solutions In High Demand: Analyst Raises Expectations For WNS (Holdings)

Barrington Research analyst Vincent Colicchio reiterated an Outperform rating on the shares of WNS (Holdings) Limited WNS and raised the price target from $97 to $108.
The company reported fiscal Q4/23 adjusted EPS of $1.04, which exceeded the analyst’s forecast of $1.01 by 2% and the FactSet consensus forecast of $1.02 by 2%.
The analyst said the EPS upside compared to the estimate was due to net revenue overage of 3% and a lower-than-expected adjusted tax rate.
The analyst also pointed out fiscal Q4/23 net revenue of $305.0 million, which exceeded the forecast.
The analyst remarked that demand remained robust despite the difficult economic environment.
The company’s services have not been subject to budgetary pressures as clients continue to recognize the necessity of implementing digital BPM solutions to improve competitiveness and reduce costs..
The analyst noted that WNS’ cost reduction and transformation solutions are currently generating healthy interest and management characterized the sales pipeline as strong.
The analyst has increased fiscal 2024 adjusted EPS forecast to $4.24 from $4.14 and estimates fiscal 2025 adjusted EPS to be $4.74.
Price Action: WNS shares are trading lower by 0.06% at $90.12 on the last check Monday.
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