Syntel Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of information technology outsourcing expert Syntel (Nasdaq: SYNT  ) jumped as much as 10% today in intraday trading as investors reacted to an upgrade from Deutsche Bank.

So what: Deutsche lifted the stock from hold to buy and boosted its target price for the stock from $50 to $57. In its report, Deutsche noted that Syntel is trading at an attractive valuation relative to its peers -- a group that includes high-multiple competitors such as Cognizant Technology (Nasdaq: CTSH  ) and Infosys (Nasdaq: INFY  ) -- and that current 2011 growth estimates from the rest of Wall Street may be too conservative.

Now what: Unfortunately, today's big move squeezed much of the remaining juice that Deutsche was highlighting. However, the bank's bullish appraisal of Syntel could be a good reason for growth-oriented investors to put this one on their radar in case the stock takes a dip down the road.

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