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Investing.com - Baird downgraded WNS Limited (NYSE:WNS) stock rating from Outperform to Neutral while slightly lowering its price target to $76.50 from $78.00 on Tuesday. The company has demonstrated strong financial performance, with InvestingPro data showing a 67.5% price return over the past six months and healthy financials reflected in its GREAT overall health score.
The rating change follows Capgemini’s announcement earlier Tuesday that it will acquire WNS for $76.50 per share, representing a total purchase price of $3.3 billion.
The acquisition price reflects approximately 15 times 2026 price-to-earnings ratio and about 10 times 2026 enterprise value to EBITDA, according to Baird’s analysis.
Capgemini’s offer represents a 17% premium to WNS’s closing price on July 3, prompting WNS shares to rally to $74.70 on Tuesday, approaching the acquisition price.
The transaction is expected to close by the end of 2025 and is anticipated to immediately boost Capgemini’s revenue and operating margin once completed.
In other recent news, WNS Limited has been in the spotlight following Capgemini’s announcement of its acquisition for $76.50 per share, totaling a cash value of $3.3 billion. This transaction has been unanimously approved by the boards of both companies and is expected to close by the end of 2025, pending regulatory approvals. The acquisition aims to establish a global leader in AI-powered Intelligent Operations, with Capgemini anticipating revenue and cost synergies by 2027. In light of this development, Jefferies downgraded WNS from Buy to Hold, citing the acquisition price as a fair outcome for investors. Similarly, William Blair downgraded WNS to Market Perform, noting the strategic fit of the merger. Separately, WNS reported strong financial performance with a 9% revenue growth over the past three years, reaching $1.27 billion in revenue for fiscal year 2025. Additionally, WNS announced the extension of Non-Executive Director Françoise Gri’s term, reflecting the company’s confidence in her contributions. Stifel analysts maintained their outlook on the Information and Financial Technology Services sector, despite mixed revenue growth reports, with WNS being one of the companies that raised its guidance.
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