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WNS Re-rated: Jefferies Lowers Stance to ‘Hold’, Trims Target Amid Growth Headwinds

Updated: July 08, 2025 11:16

Image Source: Stocktwits
WNS (Holdings) Ltd., a global business process management (BPM) firm, has seen its investment rating revised by Jefferies from “Buy” to “Hold,” with the target price adjusted downward from $80 to $76.50. The reassessment reflects tempered expectations around nearterm growth, despite the company’s strong digital transformation capabilities.
 
Key Takeaways:
  • Jefferies has revised its stance due to slower client onboarding and subdued discretionary spending.
  • The new target of $76.50 suggests limited upside from the current market price of approximately $65.38.
  • WNS posted 24.5% EPS growth in FY25, but revenue growth has decelerated to 5.56% YoY.
  • The stock trades at a P/E of 17.58, with a market capitalization of $3.03 billion.
What Prompted the Rerating:
  • Budget Constraints: Clients in BFSI and travel sectors are tightening budgets, impacting deal flow.
  • Margin Pressures: Wage inflation and delayed automation benefits are compressing operating margins.
  • Lack of ShortTerm Catalysts: Despite a robust business model, Jefferies sees limited triggers for a rerating in the next two quarters.
Analyst Sentiment:
  • Broader analyst consensus remains positive, with most targets ranging between $63 and $75.
  • Firms like Barrington Research and Needham continue to back WNS, citing its scalable delivery model and digitalfirst approach.
Outlook: While WNS remains a fundamentally strong player in the BPM space, nearterm macro and margin challenges may limit upside. Investors may prefer to hold and reassess once demand visibility improves.
 
Sources: Jefferies, MarketBeat, StockAnalysis, Morningstar

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