Needham & Company Reiterates a 'Strong Buy' on Cognizant Technology (CTSH); Q4 Preview - Remains 2012 Top Pick

Needham & Company reiterates a 'Strong Buy' on Cognizant Technology Solutions (NASDAQ: CTSH) price target of $100.00

Analyst, Mayank Tandon, said, "When CTSH reports 4Q FY11 results this Wednesday before the open the focus will almost entirely be on CTSH's commentary around demand and the initial guidance for FY12. While CTSH's peers, namely Infosys (Nasdaq: INFY)(Hold) and Tata Consultancy Services (TCS), have pointed to some softness on the discretionary demand side and a weak start to the calendar year, we believe CTSH's tone will be more upbeat. We believe CTSH is taking share and management is likely to initially guide for revenue growth in line to slightly ahead of consensus...We are modeling 3.7% Q/Q growth in revenue to $1.660 billion, in line with guidance...We expect CTSH to report operating margins at the high-end of its 19-20% target band and $0.01-0.02 upside to our $0.76 EPS estimate (Street is at $0.77) on the back of stronger revenue growth...CTSH is our Top Pick for 2012."

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 $73.35 yesterday.

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