All bets may not be off regarding iGate (IGTE) after the company dismissed CEO Phaneesh Murthy this week, but Oppenheimer's are, at least in terms of predicting a price. Analyst Glenn Greene removes his $22 target and downgrades the shares to Perform from Outperform, saying "Mr. Murthy was instrumental in IGTE's growth strategy and we suspect key customer relationships. He will not easily be replaced."
iGate (IGTE -11.1%) tumbles after "terminating the employment" of CEO Phaneesh Murthy. The company says Murthy's failure to report a relationship with a"subordinate employee" constituted a violation of both company policy and the CEO's employment contract. (PR)
Tech outsourcing stocks are on watch after a stark revenue warning from Infosys rattles the sector. Cognizant Technology Solutions (CTSH) is down 4.8% premarket, while iGATE (IGTE) and Syntel (SYNT) haven't opened up yet for trading.
IGate (IGTE +9.1%) pops after its Q1 revenues soared by 247% Y/Y to $263M, up from $76M in Q1 2011. Net income was also higher, rising a greater-than-anticipated 35% as the surge in revenue compensated for slightly weaker margins.