Cowen Maintains Market Perform Following Computer Sciences (CSC) 4Q and Announced Separation

Cowen maintains an Outperform rating and $75 price target on Computer Sciences (NYSE: CSC) following 4Q15 results and announced separation. CSC reported Sales of $2.9B compared to consensus of $2.96B. EPS of $1.26 exceeded consensus expectations of $1.20. CSC also announced that they will be splitting into two publicly traded companies. CSC intends to pay a special cash dividend to shareholders of $10.50 per share at closing, which is expected by October 2015.

Cowen analyst Moshe Katri commented saying, "CSC’s Board of Directors unanimously approved a plan to separate the company into two publicly traded companies: 1. CSC – Global Commercial, serving Fortune 1,000 companies and non-U.S. government clients, leveraging its industry, infrastructure and consulting expertise. The entity will have $8.1B in FY 15 revenues, serving 1,000+ customers (including 175 of the Fortune 500), 51,000 employees and 34 delivery centers globally. The business will retain its leadership status across multiple markets, along with innovative offerings and industry-leading strategic partnerships; 2. CSC – U.S. Public Sector will be the top three provider of mission-specific IT, infrastructure and business services to U.S. federal, state and defense agencies, with FY15 revenues of $4.1B and employing 14,000 people, including 3,500 U.S. military veterans. CSC will operate on a “business as usual” basis while details of the separation – including leadership, locations and other details – are being finalized."

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

Shares of Computer Sciences closed at $67.66 yesterday.

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