- Syntel's operating results for the third quarter showed moderately slowing revenue growth but otherwise were consistent with historical trends.
- Growth was affected both by declines in its manufacturing segment and slower-than-expected growth in its healthcare segment. Net margins were less affected.
- Cognizant's Trizetto acquisition played a role, but much of the healthcare segment revenue decline should be made up in future quarters, and the company's long-term prospects remain intact.
- There is no significant change to my fair value estimate, and I view the stock weakness as an overreaction, leaving shares materially undervalued and offering an attractive entry point.