UPDATE: Stifel Nicolaus Cuts PT to $16.50 on Sapient

Loading...
Loading...
Stifel Nicolaus lowers its price target on Buy-rated Sapient
SAPE
as the company guides lower than expected for 2012. Stifel Nicolaus says, "Last night after the close SAPE reported a modest EPS beat and in line revenue; however, initiated 2012 guidance implying EPS of ~$0.56, which is $0.07 below consensus of $0.63. The difference was driven primarily by a slower than anticipated recovery within their investment banking vertical (~10% of revenue and experiencing particular weakness with one European client), which will negatively impact revenue growth and profitability (lower utilization) and a decision to invest in expanding more aggressively into the Asia-Pac region (currently 6-8% of revenue, negative to margins) primarily to remain competitive with clients looking to access the faster growing Asian markets with their digital strategies." SAPE closed at $12.91 a share on Tuesday.
Posted In: Analyst ColorPrice TargetReiterationIntraday UpdateAnalyst RatingsStifel Nicolaus
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...