Citigroup Maintains Buy, $88 Target on Cognizant
Citigroup reiterates its Buy rating and $88 target price on Cognizant Technology Solutions Corp. (NASDAQ: CTSH) as the company sets 2012 management comp scheme.
Citi comments, “The award of performance units to its CEO, COO/CFO and two other senior offers of the company will kick in if the company delivers 2012 revenue of $7.243 billion or better. …This implies a starting point of 18.5% year/year growth – at that level 50% of the awarded performance units shall vest. The next level – at which 100% of the awarded performance units vest – is 2012 revenue of $7.525 billion (which represents 23.2% growth off the $6.11 billion base-line). The final level – at which 200% of the awarded performance units vest – is 2012 revenue of $8.087.5 billion (which represents 32.4% growth off the said base).”
CTSH closed at $64.69 per share on Monday.
