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Citi Recommends Under-the-Radar Company ExlService Holdings for Data and AI Opportunity
In a recent note, Citi has identified ExlService Holdings as a prime candidate for investment due to its focus on data and artificial intelligence. The U.S.-listed company has seen significant growth in its AI-led business, with a 32% compound annual growth rate since 2020. ExlService has also reported that its current exposure to data and AI-led business accounts for 51% of its 2023 revenue. The company has set medium-term targets for double-digit revenue growth and faster-than-revenue EPS growth, and Citi analysts are optimistic about its potential for industry-leading growth. With a current demand pipeline for its data and AI services standing at $2 billion, Citi has given the stock a buy rating and a price target of $37, representing a potential upside of 22%. Analysts covering the stock also give it a 73% buy rating and an average upside of 20.9%, with a consensus price target of $36.61.
