Virtusa's (NASDAQ:VRTU) third-quarter results were inline with the industry and peers, but Needham still sees more upside for the shares of the company.
Needham says, "VRTU posted Q3 results that were modestly ahead of our estimates and that were in-line with what Virtusa’s peers have reported in previous weeks. The demand environment is improving and this is reflected in our estimates. We believe that VRTU shares have more upside from here.
"Our Q4 revenue and EPS estimates are $58.3 million and $0.21 versus our previous estimates of $57.9 million and $0.20. Our FY’12 estimates are $250.0 million and $0.88 versus our previous estimates of $240.8 million and $0.88. We lose almost $0.03 as we estimate that VRTU’s FY’12 share count will be approximately 1 million shares higher than our previous estimate. Our FY’13 estimates are $286.3 million and $1.13 as compared to our previous estimates of $267.0 million and $1.10."
Needham & Company maintains a "Buy" rating on Virtusa (VRTU), which closed Thursday at $17.22, down $0.28, or 1.60 percent. Needham raised their price target on Virtusa from $20 to $21.
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