Cognizant Technology (CTSH) PT Raised to $70 at Cowen

Cowen analyst Moshe Katri reiterated an Outperform rating and boosted its price target on Cognizant Technology Solutions (NASDAQ: CTSH) to $70.00 (from $65.00) post strong Q1 results and CY15 guidance raise, as they believe Cognizant benefits from unique Health Care, digital exposure.

Katri commented, "Cognizant will likely continue to stand out vs. its peers considering its: 1. Early investments in digital offerings that are beginning to gain significant traction especially as enterprise clients are beginning to fund larger projects related to SMAC (Social, Mobile, Analytics and Cloud) and as certain (hybrid cloud) projects are creating the need for massive integration capabilities (legacy and cloud-based environments); 2. Increased focus on the Health Care vertical, where both sub-sectors (Pharma and HC Providers) pointing to solid IT spending growth trajectory (a recovery from a 2-year drought); 3. unique go-to-market strategy utilizing vertical-specific consulting skills; and 4. continued investments in key personnel, methodologies, IP, capping non-GAAP EBIT margins in the 19-20% level."

The firm sees FY 15 guidance as "conservative."

For an analyst ratings summary and ratings history on Cognizant Technology Solutions click here. For more ratings news on Cognizant Technology Solutions click here.

Shares of Cognizant Technology Solutions closed at $62.78 yesterday.

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