DB Alex Brown Boosts Computer Sciences to 'Buy'

Analyst Mark D'Annolfo thinks computer consulting firm's shares are cheap despite its reduced guidance

DB Alex Brown upgraded Computer Sciences (CSC ) to buy.

Analyst Mark D'Annolfo says, as expected, the company cut the fiscal 2002 (March) EPS guidance to $2.00-$2.10, which he believes is already factored into the share price. D'Annolfo notes the guidance reflects continued softness in the company's consulting and systems integration business.

He cut the $2.00 fiscal 2002 EPS to $1.88, and cut the $2.77 fiscal 2003 estimate to $2.50, which he believes is more attainable. D'Annolfo also upgraded the stock because he thinks shares are "dirt cheap", and thinks the risk/reward is positive.

D'Annolfo thinks a win for the company's Groundbreaker application will boost performance. Also, he says that even if Computer Sciences hits its quarterly numbers, it could be viewed as a positive factor considering investors' negative psychology towards the company.

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