ExlService Holdings, Inc. (NASDAQ:EXLS) Just Reported And Analysts Have Been Lifting Their Price Targets

Shareholders might have noticed that ExlService Holdings, Inc. (NASDAQ:EXLS) filed its full-year result this time last week. The early response was not positive, with shares down 4.0% to US$48.43 in the past week. It was a credible result overall, with revenues of US$1.8b and statutory earnings per share of US$1.21 both in line with analyst estimates, showing that ExlService Holdings is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for ExlService Holdings

Following the latest results, ExlService Holdings' nine analysts are now forecasting revenues of US$2.06b in 2025. This would be a solid 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 17% to US$1.43. Before this earnings report, the analysts had been forecasting revenues of US$2.06b and earnings per share (EPS) of US$1.43 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 10% to US$55.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of ExlService Holdings' earnings by assigning a price premium. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic ExlService Holdings analyst has a price target of US$60.00 per share, while the most pessimistic values it at US$52.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.5% annually. So it's pretty clear that ExlService Holdings is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple ExlService Holdings analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of ExlService Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.