JP Morgan Reiterates Overweight on Cognizant
JP Morgan maintains its Overweight rating on Cognizant Technology Solutions Corp (NASDAQ: CTSH) on encouraging internal management targets.
JPM comments, “Based on the targets, management will get 100% of awards at 23% revenue growth in 2012 (based on the company's guidance for 2011), 0% awards below 18.5% growth, 50% between 18.5% and 23% growth, and 200% at 32% (or above) growth. We interpret these targets as management's current views on next year's growth with the initial guidance close to the 100% award level (although slightly adjusted for macro changes until Feb) and a 200% level representing what is achievable if demand environment does not further deteriorate.”
CTSH closed at $64.69 per share on Monday.
