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UPDATE: Susquehanna Downgrades Unisys

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In a report published Friday, Susquehanna analyst James Friedman downgraded Unisys (NYSE: UIS) to Neutral from Positive, with a $30.00 price target.

According to the report, although UIS management is doing an excellent job energizing the company with a clear product roadmap, a lower cost structure and an improved delivery team, analysts believe major catalysts are now priced in with shares up more than 70 percent.

“Our DCF is super-sensitive to changes in revenue growth and margin assumptions,” the report noted. “For example, should the revenue CAGR decrease/increase just 100 bps, the value moves $2 per share (Figure 2); at the same time a 100 bps delta in margins yields $3 per share. On a P/E basis, our price target of $30 is based on ~6.5x NTM adjusted EPS of $4.51. Multiple expansion will likely require some top-line growth.”

A risk to UIS is a $35 based on ~8x forward adjusted EPS. As interest rates increase, this could be achieved. UIS closed Thursday at $32.23 with shares trading down at 4.48 percent.

Latest Ratings for UIS

DateFirmActionFromTo
Jul 2014SusquehannaUpgradesNeutralPositive
Mar 2014Raymond JamesDowngradesOutperformMarket Perform
Jan 2014SusquehannaDowngradesPositiveNeutral

View More Analyst Ratings for UIS
View the Latest Analyst Ratings

Posted-In: James Friedman SusquehannaAnalyst Color Downgrades Analyst Ratings

 

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