JPMorgan Chase & Co. Forecasts Strong Price Appreciation for ExlService (NASDAQ:EXLS) Stock

Key Points

• JPMorgan Chase raised its price target on ExlService to $43 and keeps an "overweight" rating, implying about a 34.9% upside from the prior close (MarketBeat consensus target is $41.50, "Moderate Buy").
• ExlService beat quarterly expectations with $0.58 EPS (vs. $0.53 forecast) and $570.35M revenue (up 13.8% year-over-year), and set FY2026 guidance of $2.18–$2.23 EPS.
• The board approved a $125 million share buyback (up to ~2.7% of shares) and institutional ownership is very high (≈92.9%), with recent sizable purchases by JPMorgan and AQR.

ExlService (NASDAQ:EXLS - Get Free Report) had its price target raised by equities researchers at JPMorgan Chase & Co. from $42.00 to $43.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has an "overweight" rating on the business services provider's stock. JPMorgan Chase & Co.'s price objective indicates a potential upside of 34.88% from the stock's previous close.

Several other brokerages have also recently weighed in on EXLS. Needham & Company LLC reaffirmed a "buy" rating and issued a $40.00 price objective (down from $55.00) on shares of ExlService in a report on Wednesday, February 25th. Robert W. Baird set a $35.00 price objective on ExlService in a report on Wednesday, February 25th. TD Cowen dropped their price objective on ExlService from $51.00 to $45.00 and set a "buy" rating for the company in a report on Thursday, February 26th. Weiss Ratings cut ExlService from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, April 24th. Finally, Stifel Nicolaus dropped their price objective on ExlService from $54.00 to $46.00 and set a "buy" rating for the company in a report on Thursday, February 26th. Four 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.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $41.50.

ExlService Price Performance

NASDAQ EXLS traded up $0.69 during midday trading on Thursday, hitting $31.88. The company had a trading volume of 4,592,185 shares, compared to its average volume of 2,164,702. The company has a market capitalization of $4.99 billion, a PE ratio of 20.70, a P/E/G ratio of 1.37 and a beta of 0.89. The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 0.32. The firm has a 50-day moving average price of $30.70 and a 200-day moving average price of $36.54. ExlService has a twelve month low of $26.94 and a twelve month high of $48.79.

ExlService (NASDAQ:EXLS - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The business services provider reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.53 by $0.05. The firm had revenue of $570.35 million during the quarter, compared to analysts' expectations of $557.89 million. ExlService had a return on equity of 26.66% and a net margin of 12.02%.The company's quarterly revenue was up 13.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.48 EPS. ExlService has set its FY 2026 guidance at 2.180-2.230 EPS. As a group, analysts anticipate that ExlService will post 1.76 earnings per share for the current fiscal year.

ExlService declared that its board has approved a share repurchase program on Tuesday, March 17th that allows the company to buyback $125.00 million in shares. This buyback authorization allows the business services provider to buy up to 2.7% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its shares are undervalued.

Insider Activity at ExlService

In other news, EVP Ajay Ayyappan sold 2,275 shares of the business's stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $30.32, for a total transaction of $68,978.00. Following the completion of the transaction, the executive vice president owned 53,768 shares of the company's stock, valued at approximately $1,630,245.76. The trade was a 4.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 4.04% of the company's stock.

Hedge Funds Weigh In On ExlService

A number of institutional investors have recently modified their holdings of the business. JPMorgan Chase & Co. increased its holdings in ExlService by 9.5% in the 4th quarter. JPMorgan Chase & Co. now owns 5,927,793 shares of the business services provider's stock worth $251,576,000 after purchasing an additional 514,911 shares in the last quarter. AQR Capital Management LLC grew its position in shares of ExlService by 109.7% in the 4th quarter. AQR Capital Management LLC now owns 4,118,625 shares of the business services provider's stock valued at $174,794,000 after buying an additional 2,154,652 shares during the last quarter. Handelsbanken Fonder AB grew its position in shares of ExlService by 10.7% in the 4th quarter. Handelsbanken Fonder AB now owns 3,781,036 shares of the business services provider's stock valued at $160,467,000 after buying an additional 364,146 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of ExlService by 1.1% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,902,412 shares of the business services provider's stock valued at $123,181,000 after buying an additional 32,734 shares during the last quarter. Finally, Fenimore Asset Management Inc grew its position in shares of ExlService by 0.7% in the 3rd quarter. Fenimore Asset Management Inc now owns 2,789,992 shares of the business services provider's stock valued at $122,843,000 after buying an additional 18,747 shares during the last quarter. Institutional investors and hedge funds own 92.92% of the company's stock.

About ExlService

ExlService Holdings, Inc NASDAQ: EXLS is a global operations management and analytics company that partners with clients in insurance, healthcare, banking, and financial services to drive digital transformation and operational excellence. The firm delivers analytics-driven solutions and business process outsourcing services, including claims adjudication, finance and accounting, data management, and customer service support. ExlService combines domain expertise with advanced analytics, artificial intelligence, and automation technologies to help organizations optimize processes, enhance customer experiences, and manage risk.

Founded in 1999 and headquartered in New York City, ExlService has grown through a mix of organic expansion and strategic acquisitions, earning recognition for its data analytics capabilities and industry-specific knowledge.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.