NEW YORK (TheStreet) -- iGATE Corp. (IGTE) was downgraded to "reduce" from "neutral" at Nomura Holdings (NMR) with a price target of $35 from $29, with analysts saying the current multiple is unlikely to be sustainable.
That was despite the technology company on Wednesday reporting its second quarter earnings results of 48 cents per share, beating the analysts' consensus estimate of 47 cents.
Second quarter revenue was up 10% to $312 million, beating analyst expectations of $306 million.
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"We rate IGATE CORP (IGTE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: