Needham & Company Maintains a 'Strong Buy' on Cognizant Technology Solutions (CTSH); Q1 Preview
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Price: $58.79 -0.84%
Rating Summary:
19 Buy, 21 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 21 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Strong Buy' on Cognizant Technology Solutions (NASDAQ: CTSH) price target of $100.00.
Analyst, Mayank Tandon, said, "We believe CTSH could report modest upside in 1Q on the back of strength in application maintenance in the US and a modest pickup in application development spend. While financial services likely remained challenged, we believe Europe improved slightly from the December quarter lows, and we believe the healthcare vertical stayed strong. With greater clarity on IT budgets than in early February when management provided FY12 guidance and amid signs of improvement in project activity at the end of 1Q and through early 2Q, we believe management could raise its “at least” 23% revenue growth guidance for FY12 slightly. The guidance should continue to reflect a strong seasonal pickup over the June and September quarters. While the stock is likely to remain volatile going into results, we believe the risk-reward remains compelling for LT-focused investors at 16x ex-cash CY13E EPS for 25-30% LT organic growth."
Tandon is looking for Q1 EPS of $0.79 and $1.7 billion
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 $71.09 yesterday.
Analyst, Mayank Tandon, said, "We believe CTSH could report modest upside in 1Q on the back of strength in application maintenance in the US and a modest pickup in application development spend. While financial services likely remained challenged, we believe Europe improved slightly from the December quarter lows, and we believe the healthcare vertical stayed strong. With greater clarity on IT budgets than in early February when management provided FY12 guidance and amid signs of improvement in project activity at the end of 1Q and through early 2Q, we believe management could raise its “at least” 23% revenue growth guidance for FY12 slightly. The guidance should continue to reflect a strong seasonal pickup over the June and September quarters. While the stock is likely to remain volatile going into results, we believe the risk-reward remains compelling for LT-focused investors at 16x ex-cash CY13E EPS for 25-30% LT organic growth."
Tandon is looking for Q1 EPS of $0.79 and $1.7 billion
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 $71.09 yesterday.
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