Credit Suisse First Boston keeps neutral on Affiliated Computer Services (ACS).
Analyst Dris Upitis says, as expected, this was another strong quarter for Affiliated Computer as earnings and bookings strength continue. He says the third quarter earnings per share beat his 56 cents estimate, and says the 26% revenue growth beat his estimate by 1.9%. Upitis says he's encouraged by higher-than-expected fiscal 2004 guidance, and he thinks the stock is likely to continue to trade well in the near term.
However, Upitis says his longer term concerns persist regarding increased competition and larger deal sizes. And with the stock still embedding an 12.8% long-term EBITDA growth, he is maintaining his neutral rating. Upitis sees $2.18 fiscal 2003 (June) earnings per share, and $2.54 for 2004.