Cognizant Technology Upgrade By UBS

Shares of Cognizant Technology Solutions ($CTSH) have recovered after a recent dip. Steven Milunovich at UBS Securities just upped CTSH to a buy and raised his price target to $58 per share.

Milunovich expects EPS ex items this year of $2.55 to $2.57, vs. $2.02 last year. The consensus estimate of analysts polled by Thomson Reuters is $2.35.

Milunovich also expects revenue to rise 17.5% to 18.5%, where analysts expect 16.5%.

“We like Cognizant because it is well positioned for the current demand environment. Cognizant is well positioned for the current IT environment in that IT budgets are under pressure with a focus on cost optimization,” Milunovich wrote.

The company’s technology and expansion into Europe “could double its available market, helping maintain upper-teen revenue growth,” he said.

The stock was below $48 a week ago, and it broke above $53 this morning.

Posted by on April 2nd, 2014 at 12:48 pm


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