UPDATE: Stifel Nicolaus Raises PT to $47 on Computer Sciences Corporation Post Divestiture
Stifel Nicolaus reiterated its Buy rating on Computer Sciences Corporation (NYSE: CSC) and raised its price target from $39 to $47.
Stifel Nicolaus said, "Yesterday CSC announced that it had reached an agreement to divest its Credit Services business to Equifax (EFX: Hold, $53.38) for $1bn in cash. … The sale is expected to close by calendar year-end; the after-tax proceeds from the sale are estimated to approximate $750-$800mn. CSC plans to use $300-$400mn for share repurchases and to contribute $300-$400mn toward its unfunded pension obligation ($1.3bn at 3/31/12, with $250mn contribution already earmarked for this year)."
Computer Sciences Corporation closed at $39.27 on Monday.
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Tags: Stifel Nicolaus