Goldman Upgrades Cognizant Technology Solutions To Buy

Goldman Sachs has published a research report on Cognizant Technology Solutions

and has upgraded the company to Buy from Neutral. In the report, Goldman writes "Following our trip to India, we come away with increased confidence that offshore's growth trajectory is well intact with various factors expanding the long-term prospects for global service delivery. We expect that CTSH will be a leading beneficiary of offshore's robust growth profile, supporting our higher revenue growth forecast of 30% in CY11 and 27% in CY12 (from 25% and 20%). Reflecting our higher growth expectations, we upgrade to Buy from Neutral and raise our CY11 and CY12 EPS estimates to $2.72 and $3.43 (from $2.63 and $3.15). Consistent with these changes and assuming a higher CY11 multiple, we are raising our 12-month PT to $80 ($71), implying 15% upside." Goldman has also raised the price target to $80. Cognizant Technology Solutions closed Friday at $69.31.