Computer Sciences Corp. Given New $58.00 Price Target at Stifel Nicolaus (CSC)

Equities researchers at Stifel Nicolaus boosted their target price on shares of Computer Sciences Corp. (NYSE:CSC) from $50.00 to $58.00 in a research report issued on Wednesday, Analyst Ratings reports. The firm currently has a “buy” rating on the stock. Stifel Nicolaus’ target price indicates a potential upside of 16.09% from the stock’s previous close.

The analysts wrote, “CSC reported F1Q (Jun) last night. In sum, the company beat on EPS on lower revenue with the upside being driven primarily by better than expected gross margin (cost take out and contract performance). Consistent with the quarter, management raised EPS guidance $0.20 to a range of $3.50-$3.70 on better margin performance. We continue to believe the company can generate $5-6/sh in FCF on the current revenue base, which should support a $50-60 stock price. While there is still some upside at current levels without incremental revenue growth; we believe the primary catalyst is the prospect of renewed revenue growth. We do not expect to see growth in FY14 (Mar); however, we may see some improvement in commercial bookings in 2H (Federal Government Segment, or NPS, encumbered by sequestration). Efforts to accelerate growth are primarily focused on the reformulation of the sales function including incremental headcount (hunters) and the creation of “general managers” assigned to top 500 accounts with incentives in place to drive cross selling and higher revenue/client. As a reminder, 12 months ago when the new management team took over, less than 5% of the top 200 accounts were buying more than one service from CSC.”

Shares of Computer Sciences Corp. (NYSE:CSC) traded up 4.60% during mid-day trading on Wednesday, hitting $52.26. Computer Sciences Corp. has a 52 week low of $26.51 and a 52 week high of $50.59. The stock’s 50-day moving average is currently $46.64. The company has a market cap of $7.851 billion and a P/E ratio of 8.08.

Computer Sciences Corp. (NYSE:CSC) last announced its earnings results on Tuesday, August 6th. The company reported $0.91 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.67 by $0.24. The company had revenue of $3.26 billion for the quarter, compared to the consensus estimate of $3.59 billion. During the same quarter in the prior year, the company posted $0.26 earnings per share. The company’s quarterly revenue was down 10.3% on a year-over-year basis. On average, analysts predict that Computer Sciences Corp. will post $3.52 earnings per share for the current fiscal year.

A number of other analysts have also recently weighed in on CSC. Analysts at JPMorgan Chase & Co. reiterated an “underweight” rating on shares of Computer Sciences Corp. in a research note to investors on Wednesday, July 10th. They now have a $47.00 price target on the stock, down previously from $48.00. Separately, analysts at Ned Davis Research upgraded shares of Computer Sciences Corp. from a “neutral” rating to a “buy” rating in a research note to investors on Monday, July 8th. Finally, analysts at Barclays Capital reiterated an “equal weight” rating on shares of Computer Sciences Corp. in a research note to investors on Monday, July 8th. They now have a $50.00 price target on the stock.

One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating and four have issued a buy rating to the stock. Computer Sciences Corp. has an average rating of “Hold” and an average price target of $44.55.

Computer Sciences Corporation (NYSE:CSC) is engaged in the information technology (IT) and professional services industry.

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