UPDATE: Oppenheimer Downgrades Convergys to Perform on Valuation

Oppenheimer reduced its rating on Convergys

from Outperform to Perform as shares reached its previous price target of $16 a share. Oppenheimer noted, "We are downgrading CVG shares to Perform from Outperform and removing our $16 price target, largely on valuation, with CVG trading close to our PT at its two-year high. Shares are up 23% YTD, outpacing NASDAQ's 14% and the S&P's 10%. We continue to view CVG's business model favorably, on call volume strength and potential use of cash for buybacks. However, we believe these factors are already reflected in the share price, and upside from current levels may be limited, in our view, especially given our estimate for just 4% top-line growth in FY12/FY13." Convergys closed at $15.65 on Wednesday.