Wachovia Upgrades Cognizant Technology (CTSH) to Market Perform
CTSH Hot Sheet
Rating Summary:11 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 22 | Down: 8 | New: 36
Wachovia upgrades Cognizant Technology (Nasdaq: CTSH) to Market Perform from Underperform. Valuation Range: $23 to $26.
Wachovia analyst says, "While we remain cautious on the near- and intermediate-term prospects for growth generated by the offshore IT/BPO providers, we believe that CTSH's relative valuation to Tier I offshore providers Infosys (Nasdaq: INFY) and Wipro (NYSE: WIT), both rated Underperform, suggests the potential for relative outperformance...We estimate that an extension of the STPI tax holiday in India
could add $0.16, or 11%, to our CY10 EPS estimate for CTSH. We estimate that it would add only 4% to INFY's and 2% to WIT's FY11 (March) EPS estimates. A favorable decision could be announced as soon as July 6 with the India budget proposal."
To see more analyst ratings on CTSH Click Here.
Cognizant Technology Solutions Corporation (Cognizant) is a provider of custom information technology (IT) consulting and technology services, as well as outsourcing services for Global 2000 companies located in North America, Europe and Asia.
Wachovia analyst says, "While we remain cautious on the near- and intermediate-term prospects for growth generated by the offshore IT/BPO providers, we believe that CTSH's relative valuation to Tier I offshore providers Infosys (Nasdaq: INFY) and Wipro (NYSE: WIT), both rated Underperform, suggests the potential for relative outperformance...We estimate that an extension of the STPI tax holiday in India
could add $0.16, or 11%, to our CY10 EPS estimate for CTSH. We estimate that it would add only 4% to INFY's and 2% to WIT's FY11 (March) EPS estimates. A favorable decision could be announced as soon as July 6 with the India budget proposal."
To see more analyst ratings on CTSH Click Here.
Cognizant Technology Solutions Corporation (Cognizant) is a provider of custom information technology (IT) consulting and technology services, as well as outsourcing services for Global 2000 companies located in North America, Europe and Asia.
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