Credit Suisse First Boston keeps buy on Cognizant Technology (CTSH), but advises caution due to the conflict in India.
Analyst Barry Chubrik says the situation along the India/Pakistan border is escalating. He says a warning, one that was issued May 31 by the U.S. Dept. of State regarding travel to India, could impact the company's business momentum into the second half -- depending on the severity of the situation.
Chubrik sees three scenarios potentially impacting the company, from the most likely to least likely: customer prospects delaying travel/purchasing decisions ramp-up, existing customers delaying additional projects, and existing customers pulling IT work out of India. Chubrik maintains his $1.51 2002 earnings per share estimate and keeps his $1.72 2003 estimate. He still rates the stock as buy.