ExlService (NASDAQ:EXLS) Stock Price Expected to Rise, Stifel Nicolaus Analyst Says

Key Points

• Stifel Nicolaus raised ExlService’s price target to $48 from $46 and maintained a “Buy” rating, implying 17.88% upside from the cited $40.72 share price. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $45.67.
• ExlService exceeded quarterly expectations, reporting $0.62 EPS versus the $0.56 consensus and revenue of $633.96 million, up 19.7% year over year.
• The company’s growth outlook is supported by strong demand for its data, analytics and AI services, while institutional investors own 92.92% of its shares.

ExlService (NASDAQ:EXLS - Get Free Report) had its price objective lifted by stock analysts at Stifel Nicolaus from $46.00 to $48.00 in a research report issued on Thursday, Benzinga reports. The brokerage currently has a "buy" rating on the business services provider's stock. Stifel Nicolaus's target price would indicate a potential upside of 17.88% from the company's previous close.

Other analysts have also issued reports about the company. Weiss Ratings upgraded ExlService from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday. TD Cowen reiterated a "buy" rating and set a $45.00 target price (up from $43.00) on shares of ExlService in a research report on Thursday, August 27th. Wall Street Zen upgraded shares of ExlService from a "hold" rating to a "buy" rating in a research report on Saturday, September 26th. Barrington Research set a $43.00 price objective on shares of ExlService in a report on Thursday, July 30th. Finally, Needham & Company LLC upped their target price on shares of ExlService from $45.00 to $50.00 and gave the company a "buy" rating in a research report on Wednesday. Six investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $45.67.

ExlService Price Performance

Shares of EXLS opened at $40.72 on Thursday. The company has a market capitalization of $6.17 billion, a price-to-earnings ratio of 25.61, a P/E/G ratio of 1.70 and a beta of 0.84. ExlService has a fifty-two week low of $24.85 and a fifty-two week high of $43.88. The business's 50-day moving average is $37.16 and its 200-day moving average is $32.81.

ExlService (NASDAQ:EXLS - Get Free Report) last posted its quarterly earnings results on Tuesday, October 27th. The business services provider reported $0.62 EPS for the quarter, topping the consensus estimate of $0.56 by $0.06. The business had revenue of $633.96 million during the quarter, compared to analysts' expectations of $615.51 million. ExlService had a net margin of 11.17% and a return on equity of 30.61%. The firm's quarterly revenue was up 19.7% compared to the same quarter last year. During the same period last year, the company posted $0.48 earnings per share. Equities research analysts expect that ExlService will post 1.82 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Vikas Bhalla sold 11,000 shares of the firm's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $35.38, for a total value of $389,180.00. Following the completion of the sale, the insider directly owned 109,295 shares in the company, valued at approximately $3,866,857.10. This trade represents a 9.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 3.66% of the company's stock.

Hedge Funds Weigh In On ExlService

Several large investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in shares of ExlService during the second quarter worth $488,370,000. Bank of America Corp DE bought a new stake in ExlService during the 2nd quarter worth $48,189,000. Bank of New York Mellon Corp bought a new stake in ExlService during the 2nd quarter worth $25,214,000. Deutsche Bank AG acquired a new position in ExlService in the 2nd quarter worth about $19,355,000. Finally, Bank of Nova Scotia bought a new position in ExlService in the second quarter valued at about $17,821,000. 92.92% of the stock is owned by institutional investors.

More ExlService News

Here are the key news stories impacting ExlService this week:

• Positive Sentiment: Strong Q3 results: ExlService reported revenue of approximately $634.0 million, up 19.7% year over year. Adjusted diluted EPS rose 28.5% to $0.62, exceeding the $0.56 analyst consensus, while GAAP diluted EPS increased 25.3% to $0.45. EXL Reports 2026 Third Quarter Results
• Positive Sentiment: 2026 outlook raised: Management increased its full-year earnings guidance, signaling confidence that demand for ExlService’s data, analytics and artificial-intelligence services remains strong. The updated outlook was described as slightly above expectations. ExlService Raises 2026 Earnings Guidance
• Positive Sentiment: AI-led growth narrative: Earnings-call commentary highlighted data- and AI-led revenue growth, with the company integrating AI into client workflows. Analysts and long-term-investor coverage viewed this strategy as supporting continued outperformance and a potentially favorable 2027 growth trajectory. ExlService 2027 Outlook
• Positive Sentiment: Analyst price-target increase: Needham raised its target for EXLS from $45 to $50 and maintained a “Buy” rating, implying substantial additional upside from the referenced $40.72 price. Needham analyst action
• Neutral Sentiment: Valuation and execution remain considerations: With EXLS trading near its 52-week high and at a reported P/E ratio above 25, investors may require continued strong growth and successful AI workflow adoption to justify further gains.

About ExlService

ExlService Holdings, Inc, operating under the EXL brand, is a data analytics and digital operations company that helps businesses use data, technology and artificial intelligence to improve decision-making, manage risk and enhance operational performance. Its services include data management, advanced analytics, business process solutions, automation and technology-enabled transformation.

EXL serves clients across industries including insurance, healthcare, banking and capital markets, utilities, travel and transportation, retail, media and manufacturing.

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