Morgan Stanley Upgrades Cognizant Tech Solutions
Morgan Stanley upgrades Cognizant Tech Solutions (CTSH ) to overweight from underweight. Yesterday the company posted 21 cents, vs. 13 cents fourth-quarter earnings per share.
Analyst Julie Santoriello upgrades the stock on expectations of continued strong growth and upside earnings potential.
She says her new conviction comes primarily from her research indicating that volume growth will remain robust, coupled with her new appreciation that this growth will continue to outweigh margin pressures.
Santoriello sees 98 cents 2005 earnings per share and $1.30 2006 earnings per share. She has a $52 target price.