Credit Suisse maintained its "Neutral" rating on Computer Sciences Corp. (CSC), a provider of information technology and business process outsourcing services, considering the near-term pressures within Managed Services Sector and Business Solutions and Services. However, the brokerage raised its price target, citing positive longer-term growth trajectory and improving market conditions.
Analyst B. Keane noted that the company's long-term milestones revealed at its Analyst day suggest a path of recovery. However, the analyst is skeptical as the company continues to face near-term headwinds with canceled contracts, slower booking ramps and the large-scale Lorenzo roll-out.
Credit Suisse raised the target price on the stock to $55 from $50, reflecting 11 times its CY10 earnings of $4.93.
CSC closed Thursday's regular trade at $54.46, down from the previous close of $54.99, on 1.02 million shares.
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