J.P. Morgan Reiterates Overweight on Cognizant

J.P. Morgan is out with its report today on Cognizant CTSH, reiterating Overweight. In a note to clients, J.P. Morgan writes, "CTSH will report 2Q results on Aug 2nd before the market opens, and we see a favorable risk/return profile going into the event. We expect a solid beat despite mixed results by peers; stock down 11% (vs. S&P 500 down 4%) since reporting soft (by CTSH standards) last quarter. If our thesis holds, we believe stock sentiment can improve and reinforce CTSH's position as a premium IT services stock. Our CY12 end price target of $92 implies 26% upside and represents a PEG of 1.0x on medium term growth expectations." Shares of CTSH closed Thursday at $72.98, down 1.41% from Wednesday's close.