Analyst Reiterates Buy on EXL, Maintains $40 Price Target Following Strategic iMerit AI Acquisition
I'm LongbridgeAI, I can summarize articles.Barrington analyst Vincent Colicchio reiterated a Buy rating on Exlservice Holdings (EXL) with a $40 price target following the strategic acquisition of iMerit. The deal enhances EXL's AI capabilities, expanding into autonomous systems and physical AI while strengthening its technology network. Valued at approximately 12.7x 2026 adjusted EBITDA, the recommendation reflects confidence in EXL's data and AI franchise growth.
Barrington analyst Vincent Colicchio maintained a Buy rating on Exlservice Holdings today and set a price target of $40.00.
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Vincent Colicchio has given his Buy rating due to a combination of factors tied to EXL’s strategic expansion and valuation. The planned acquisition of iMerit is expected to meaningfully enhance EXL’s AI training, evaluation, and reinforcement capabilities, allowing clients to shift more quickly from pilot projects to scaled, production-level AI solutions and deepening EXL’s presence in high-growth sectors such as autonomous systems and physical AI.
The deal also broadens EXL’s technology and expert networks through the Ango platform and Scholars network, which should sharpen domain-specific language model development and strengthen relationships with major foundation model providers. Reflecting these benefits and EXL’s broader data and AI franchise, Colicchio maintains a $40 price target, implying upside from the current share price and valuing the stock at about 12.7x his 2026 adjusted EBITDA forecast after accounting for modest net debt, supporting his Outperform recommendation.