Wedbush Upgrades Luxoft Holding (LXFT) to Outperform

Wedbush upgraded Luxoft Holding (NYSE: LXFT) from Neutral to Outperform with a price target of $67.00 (from $62.00).

Analyst Moshe Katri commented, "We’re upgrading our rating from NEUTRAL to OUTPERFORM, and introducing a 12-months PT of $67 (factoring 19x our projected FY18’s adj. EPS of $3.52). While our upgrade reflects an improving spending outlook for the Financial Services sector (63% of revenues), in Luxoft's case, our investment thesis is anticipating spending improvements at UBS and DB, which collectively account for roughly 43% of the company's revenue base. While in both cases we have seen spending slowdown (UBS with a new CIO on board and DB undergoing a restructuring phase), we are encouraged by Luxoft's recently announced, multi-year contract renewal with DB. The company's non-DB/UBS account base, which has been posting 30%+ top-line growth, helping enterprise clients with their digital transformation initiatives will likely maintain this growth clip."

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Shares of Luxoft Holding closed at $58.10 yesterday.

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