<<Those facts lend much credence to your statements.>>
Thanks for your kind comment. On the other hand, 'knowing too much' or 'being too close to the situation' can sometimes lead to misjudgements. I try hard to keep up with other opinions about CTSH - analysts, articles, other investors - so I'm not blindsided. In this regard, it is a shame that so few investors seem to be available to post on this board or others (Yahoo has a CTSH board that recently deteriorated into name calling, profanity and other subjects).
Anyway, I appreciate your interest in Cognizant. They had a great earnings report yesterday.
In the article below, the BofA analyst raises his target to $84!
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Forbes.com
Market Scan
Cognizant Shares Seen With Greater Upside Potential
R.M. Schneiderman, 08.03.06, 1:56 PM ET
Banc of America Securities raised its target price on Cognizant Technology Solutions on Thursday to $84 from $79, after the information technology service provider reported strong second-quarter earnings on Wednesday.
Cognizant, which employs the bulk of its workers in India, posted second-quarter revenues of $336.8 million, up 59% from the same quarter a year ago.
Diluted non-GAAP earnings per share for the quarter, which excludes the impact of stock compensation expenses, was 41 cents versus 25 cents in the year-ago period.
"We believe that Cognizant's overinvestment strategy remains a differentiating factor," wrote Abhishek Gami, a Banc of America analyst, in a recent report. "Cognizant…is able to win larger deals in the pipeline and increase customer penetration."
As Gami predicted, the company defended its margins of 20% in the second quarter, compared to larger peers who failed to do so because of industry pressures.
On Wednesday, Cognizant also delivered strong third-quarter guidance of at least $363 million in revenues and 42 cents in diluted earnings-per-share on a non-GAAP basis excluding stock compensation expenses.
As a result, Banc of America increased its earnings-per-share estimates to $1.49 from $1.41 for 2006 and $2.09 from $2 for 2007.
"We continue to rate Cognizant our only 'buy' in the Indian IT Services market based on superior growth rate, defensible margins and attractive valuation to its peers," said Gami. |
