Susquehanna Downgrades Affiliated Computer Services (ACS) to Neutral on Merger
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Susquehanna downgrades Affiliated Computer Services (NYSE: ACS) to Neutral.
Susquehanna analyst says, "We are downgrading ACS to Neutral as it has now approached our $55 price target. On its October 22 earnings call, Xerox (NYSE: XRX) more clearly articulated the synergies of the combination, rallying the ACS shares more than 5%. Moreover, in the last ten days, ACS has received good news on two key contracts - Indiana and Federal Student Loans - which has now been "priced in." Although a gross arbitrage spread versus XRX remains at 6.5%, this does not hurdle our requirements to maintain a Positive rating, and while there are "white knight" scenarios for an independent suitor, we believe ACS shares are now fairly valued at these levels. ACS posted earnings after the close on Thursday 10/22 that were largely in-line with our expectations. Based on these factors, we believe a downgrade is warranted, and our arbitrage team headed by Steve Velgot will continue to monitor the transaction."
To see more analyst ratings on ACS Click Here.
Affiliated Computer Services, Inc. provides business process outsourcing (BPO) and information technology (IT) services to commercial and government clients in the United States.
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ACS
employee on Nov 16, 2009 09:34 PMACS IN CARY, NC IS LIKE A SWEATSHOP. THEY HIRE OVER QUALIFIED PEOPLE FOR ENTRY LEVEL JOBS. MANAGERS ARE ON DRUGS (NOT KIDDING) AND MOST PEOPLE WORKING THERE HAVE RECORDS (JUST ASK THEM). PREETI RAINA NEEDS MANAGEMENT SKILLS SHE IS VERY UNPROFESSIONAL INCLUDING THE PEOPLE SHE HAS HIRED FOR SUPERVISORS. EXPECT EMPLOYEES TO WORK IN CALL CENTER THAT HAS ALOT OF DEMAND BUT DOES NOT TRAIN ON COMPUTER BACKGROUND, IM LOST ALL OF THE TIME. I JUST SUSTAIN OR CREDIT WHICHEVER I CHOOSE DOENST MATTER THE ISSUE B/C THEIR IS NO GUIDANCE