J.P. Morgan Overweight On ExlService Holdings (EXLS)

J.P. Morgan Chase & Co. has an Overweight rating and a $26 price target on shares of ExlService Holdings EXLS after it reported earnings. In a note to clients, J.P. Morgan writes, "EXLS 4Q10 results were ahead of our and consensus expectations, driven by strong growth in the outsourcing business. The company issued mixed CY11 guidance with strong revenue growth but adjusted margins below expectations. While we believe the guidance could prove conservative, it will likely disappoint investors and result in a negative stock price reaction tomorrow. We are maintaining our CY11 estimates subject to further review after tomorrow's call. We maintain our OW rating on EXLS given its higher growth (than its BPO peers) and potentially conservative guidance." Shares of EXLS gained $1.72 yesterday in after-hours trading to $23.94, a gain of 7.74%.