Oppenheimer Holdings Reiterates Outperform Rating, $80 PT on Cognizant Technology Solutions

In a report published Wednesday, Oppenheimer Holdings reiterated its Outperform rating and $80.00 price target on Cognizant Technology Solutions Corp. CTSH. Oppenheimer noted, “CTSH's 8-K filing this afternoon, which outlines performance milestones required for vesting of Performance Units (PUs), implies continued market share gains in FY13, and an outlook directionally in-line with consensus. Importantly, the performance milestones should mitigate demand/growth concerns, and clear the decks for multiple expansion. One hundred percent of PUs vest if FY13 revenue grows to $8.52B (~16% Y/Y) and 200% of PUs vest if revenue grows 25% Y/Y to $9.18B—these hurdle rates compare to our/street FY13 revenue growth estimate of 17% to $8.6B. We maintain our FY13 estimate and introduce an FY14 estimate. Reiterate Outperform and $80 PT.” Cognizant Technology Solutions Corp. closed on Tuesday at $66.98.