Citi lowered the firm's price target on ExlService to $37 from $38 and keeps a Buy rating on the shares. The analyst also opened a "30-day positive catalyst watch" on the shares. The stock has underperformed since it was reported ExlService was laying off a relatively small percentage of its workforce, and Citi views the negative reaction as overdone, the analyst tells investors in a research note. The firm expects a relatively in-line quarter and raised outlook when ExlService reports Q1 results. The company's outlook should benefit from a recently announced accelerated share repurchase that is not being reflected in consensus estimates yet, says Citi.