UPDATE: JP Morgan Raises PT to $38 on Computer Sciences Corporation Following Solid FQ2 Profits

JP Morgan reiterated its Underweight rating on Computer Sciences Corporation CSC but raised its price target from $34 to $38. JP Morgan commented, "CSC's F2Q results were mixed, but included very solid profitability which drove the stock up 17% (vs. S&P 500 up 1%). We believe F2Q results indicate management's restructuring plan to enhance profitability is already producing better results. We are also encouraged with progress in the NHS contract (a binding contract finally signed) and prepayment on the upcoming debt maturity. However, with the stock seemingly pricing in much of the near term margin progress (11x our CY13 estimates), drawn out nature of the company's restructuring (CSC targets $5 in earnings in FY17), and continued underperformance in top-line metrics, we maintain our UW rating." Computer Sciences Corporation closed at $36.80 on Tuesday.