J.P. Morgan Reiterates Overweight Rating on Syntel (SYNT)

J.P. Morgan is out with a research report this morning, where it reiterates its Overweight rating on Syntel SYNT. The JPM analysts cited the company's upcoming earnings results, noting that OW-rated SYNT reports 1Q results on 4/21. The analysts remain comfortable being slightly above consensus for the quarter and year and they expect the tone to be upbeat, in contrast to downbeat results from INFY. The analysts believe consensus estimates can move modestly higher after 1Q, but more so as the year progresses. As for valuation, the analysts remarked, “We remain OW owing to our expectations of upside to SYNT's estimates and attractive valuation. SYNT trades at 19x our CY11 estimates vs. offshore peers in low-to-mid twenties. Over the last year, SYNT has traded at a 2% discount relative to peers.”