Goldman Sachs Downgrades Sapient (SAPE) to Sell, Citing Exposure to Europe and Finance

June 26, 2012 7:17 AM EDT Send to a Friend
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Price: $14.04 -0.35%

Rating Summary:
    2 Buy, 9 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 28 | New: 24
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Goldman Sachs downgraded Sapient (NASDAQ: SAPE) from Neutral to Sell with a price target of $9.00 (down from $11.00).

The firm cited the company's exposure to slowing discretionary spending trends in the Financial vertical (31% of revenue) and Europe (39% of revenue).

"SAPE had already started to see signs of slowing growth in its two core units, SapientNitro and Global Markets, in 1Q12," the analyst comments. "Delayed budgets and some budget pull back dampened March quarter’s growth. The company reported 1Q12 revenue and earnings slightly below expectations but did not lower its full year revenue growth guidance of 13% to 16%."

Goldman lowered FY12/FY13/FY14 EPS to $0.55/$0.60/$0.72 from $0.59/$0.75/$0.90.

For an analyst ratings summary and ratings history on Sapient click here. For more ratings news on Sapient click here.

Shares of Sapient closed at $9.99 yesterday.


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