Wells Fargo analyst Ed Caso downgraded Syntel to Underperform with an unchanged price target of $21. The analyst sees the company's "weak" positioning for the ongoing shift in information technology demand from "legacy" low-cost offshore-centric software services to more onshore-necessary "digital" solutions as dragging down its growth and margins. This is reflected in Syntel's "weak" organic growth in recent quarters and expected again in Q4, Caso tells investors in a research note. Further, the analyst sees limited to no benefit for Syntel from U.S. tax reform.