Morgan Stanley Reiterates Equal-Weight on Cognizant Technology

In a research report, Morgan Stanley maintains its Equal-weight rating on Cognizant Technology Solutions Corp (NASDAQ: CTSH) as the company's targets for management compensation will likely provide a glimpse on 2012 outlook.

Morgan Stanley comments, “While these targets are not guidance (and are set using a different process), they are one of the first reliable forward-looking indicators for 2012 and therefore create the potential for a catalyst. However, we think the most likely outcome will imply 20%+ YOY revenue growth for 2012 (at the 100% award level), which will probably act as a net neutral to slight positive for shares.”

CTSH closed at $64.69 per share on Monday.