Amdocs' Managed Services Will Continue To Grow

Amdocs Limited (NYSE: DOX) is currently reporting managed services as being responsible for 45% of revenues, a part of Amdocs' business that was actually helped by the economic downturn, JP Morgan reports.

Emerging markets, especially in APAC, are seeing increasing discussions concerning outsourcing in order to support the massive growth that Amdocs is experiencing, while in Western Europe and North America the focus is on efficiencies and costs on more mature business, according to JP Morgan, and the conclusion is that there is still a very healthy channel of opportunities for more managed services business, which will continue to grow in a corrugated fashion.

JP Morgan maintains its Overweight rating and $33.50 price target.

Amdocs Limited closed yesterday at $27.31