Needham analyst Mayank Tandon downgraded Virtusa to Buy and lowered his price target to $48 from $50, saying that after a 25% rebound in the stock price from a 52-week low, the upside potential has turned "more modest". The analyst remains positive on the company's focus to offer end-to-end digital solutions and believes that it can combine "solid" revenue growth with "steady" margin expansion to produce earnings per share growth of up to 25% over the long term. In the near term, however, Tandon sees Virtusa facing additional headwinds from budget pressures at a "large European banking client".