HiSoft Technology International (NASDAQ:HSFT) Has Limited Upside Say UBS (NYSE:UBS)

HiSoft Technology International (NASDAQ:HSFT) still has potential upside says UBS (NYSE:UBS), but they see it limited, based on their recent outperformance.

UBS said, "Following two quarters of significant outperformance vs. expectations, we are raising our PT to $31, and our FY11 revenue/EPS estimates to $190.2M/$0.90 from $176.3M/$0.85. We continue to see upside potential to consensus estimates given HSFT’s strong revenue momentum. But with shares trading at 29x FY12E P/E, we see limited upside, and maintain our Neutral rating.

"While HSFT has not yet provided explicit 2011 guidance, management expects to outpace Chinese IT services industry growth of approximately 25% in ‘11. We believe that this is achievable as HSFT continues to execute across geographies and service lines."

UBS maintains a "Neutral" rating on HiSoft Technology International, which closed Wednesday at $30.64, level with the prior close. UBS boosted their price target on them from $21 to $31.