Computer Sciences shares hit highest point in nearly 2 years after Goldman upgrade
By APWednesday, October 14, 2009
Computer Sciences shares hit nearly 2-year high
NEW YORK — Shares of Computer Sciences Corp. hit their highest level in nearly two years Wednesday after Goldman Sachs upgraded the information technology company, saying there’s more corporate demand for its consulting and outsourcing services, and there’s an increasing chance it could be an acquisition target.
As the economy recovers, cash-strapped companies are resuming their spending, said analyst Julio Quinteros in a note to investors. He raised his earnings estimates through 2012 by 2 percent each year. He also boosted his price target to $54 from $46
Quinteros upgraded his rating to “neutral” from “sell” partly because he thinks the company is likelier to be acquired over the next 18 months amid consolidation in the IT services sector.
Quinteros put a “sell” rating on Computer Sciences on March 10. Since then, shares have risen 62 percent through Tuesday’s close, more than the gain in the Standard & Poor’s 500 index.
On Wednesday, shares climbed $1.52, or 2.9 percent, to $54.23 in afternoon trading. Earlier in the session, they peaked at $54.41, their highest point since December 2007.
