Perficient hits record high after Instinet starts with 'buy'

Perficient

21/06/2019 16:15

** Consulting firm's shares  PRFT.O  rise ~6% to hit record
high of $35.82
    ** Instinet initiates coverage of stock with "buy" rating
and a price target of $40; median PT $38.50
    ** "With over $550 mln of revenue, PRFT is a small fish in
an $80 bln digital transformation pond (75% of sales)," Instinet
analyst Dan Dolev says
    ** Average bill rates >30% less than peers and improved
execution help drive 90% repeat business and >70% win rates,
making Perficient well positioned between large firms like
Accenture and boutiques - Dolev
    ** "Our research uncovers four key catalysts that could help
sustain high-single-digit growth. They include favorable
category exposure, strong secular tailwinds in healthcare, and
expanding focus to top-100 accounts," Dolev adds
    ** Also expects headcount shift to offshore from 25% to 50%
to help PRFT narrow sizable margin gap with peers
    ** All 6 brokerages covering PRFT rate it "buy" or higher
    ** Including session gains, PRFT up ~61% YTD

 (Reporting by Arjun Panchadar in Bengaluru)
 ((RM: Arjun.Panchadar.thomsonreuters.com@reuters.net))