Goldman Sachs Downgrades Cognizant Technology Solutions (CTSH) to Sell
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Price: $64.53 --0%
Rating Summary:
14 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 6
Rating Summary:
14 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 6
Trade CTSH Now!
Goldman Sachs downgraded Cognizant Technology Solutions (NASDAQ: CTSH) from Neutral to Sell with a price target of $52.00 (down from $63.00).
The firm cited high exposure to the Financial vertical, which is 41% of the company's revenue. They also cited high valuation and lower revenue growth prospects.
Goldman said the downgrade is not a structural call on the model and they are not concerned about the company's long-term positioning, rather the downgrade comes based on their current view that lower revenue growth prospects will result in negative stock returns.
The firm lowered revenue growth estimates to 19%/15%/15% for CY12E/CY13E/CY14E from 20%/17%/16% and our EPS estimates to $3.31/$3.77/$4.35 from $3.36/$3.90/$4.52.
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 $57.90 yesterday, with a 52 week range of $53.54-$78.00.
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The firm cited high exposure to the Financial vertical, which is 41% of the company's revenue. They also cited high valuation and lower revenue growth prospects.
Goldman said the downgrade is not a structural call on the model and they are not concerned about the company's long-term positioning, rather the downgrade comes based on their current view that lower revenue growth prospects will result in negative stock returns.
The firm lowered revenue growth estimates to 19%/15%/15% for CY12E/CY13E/CY14E from 20%/17%/16% and our EPS estimates to $3.31/$3.77/$4.35 from $3.36/$3.90/$4.52.
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 $57.90 yesterday, with a 52 week range of $53.54-$78.00.
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