Nomura Securities Downgrades Cognizant Technology Solutions (CTSH) to Neutral
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) to Acquire B/E Aerospace (BEAV) for $6.4B
- TD Ameritrade (AMTD) to Acquire Scottrade in $4B Cash & Stock Deal
- Oil prices under pressure as Iraq resists joining output cut
- China Oceanwide to Acquire Genworth Financial (GNW) for $2.7B
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Nomura Securities downgraded Cognizant Technology Solutions (NASDAQ: CTSH) from Buy to Neutral with a price target of $62.00 (from $65.00).
Analyst Ashwin Mehta commented, "CTSH cut its FY16F revenue growth guidance for the second time in two quarters to 8.5-9.5% (vs 10-14% in 1Q and 10-13% in 2Q), citing: 1) pullback in discretionary spend, Brexit impacts and pressure at banks/insurance clients amid the low interest regime; 2) slowdown in healthcare demand due to a lull in activity ahead of pending large M&As; and 3) demand issues at a handful of clients in other verticals. Stock upside appears limited given: 1) issues in 70% of the business (BFSI + healthcare), 2) weak 4QFY16 exit growth of ~9% y-y, which is likely to limit outperformance in FY16F and material acceleration in FY17F, and 3) the stock looks fairly valued at 18.4x FY17F EPS for FY15-17F revenue/EPS CAGRs of 10%/11%, with the growth gap vs peers narrowing. We believe the case for a material premium to Indian IT peers is weakening as growth converges with lower margins/return ratios and cash returns."
Shares of Cognizant Technology Solutions closed at $59.71 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Gigamon (GIMO) PT Raised to $58 at Needham & Company Ahead of Results
- KLA-Tencor (KLAC) PT Raised to $85 at Cowen
- Jefferies Raises Price Target on ICON plc (ICLR) to $87.50; Reiterates Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!