Soundivew Upgrades EDS to 'Outperform'

Analyst John Jones says a IT services pact with Bank of America shows that EDS can close deals even without a lot of cash

Soundivew upgraded Electronic Data (EDS ) to outperform from neutral.

Analyst John Jones says the bad news likely is all released and positive catalysts are appearing. He says the Bank of America agreement shows EDS can close deals even without a lot of cash. He notes EDS is in talks with the Bank of Bermuda on a $375 million deal, and notes ABN Amro's intent to sign a $1.5 billion deal with EDS this month. Jones says he likes the outsourcing/business process outsourcing sector, which accounts for 70% of EDS's sales. He raised his $18 target to $28, and sees $2.03 2002 earnings per share, and $2.14 for 2003.

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