UPDATE: Goldman Sachs Downgrades Cognizant Technology Solutions to Sell on Valuation, Financial Exposure.

Goldman Sachs lowers its rating on Cognizant Technology Solutions (NASDAQ: CTSH) from Neutral to Sell and lowers its price target from $63 to $52. Goldman Sachs comments, "Consistent with our reduced coverage view, we are downgrading the shares of CTSH to Sell, as we take account of high valuation and lower revenue growth prospects. In particular we focus on the high exposure of this model to the Financial vertical (41% for CTSH). We note that our downgrade is not a structural call on the model, nor are we concerned about the long-term positioning of CTSH, but rather our current view that lower revenue growth prospects will result in negative stock returns until growth expectations and valuation are more correctly aligned." CTSH closed at $57.90 on Monday.