The overall message in Cognizant Technology Solutions' CTSH Form 10-K was consistent with the recent earnings call – strong growth across the board, J.P. Morgan reports.
“The company is seeing strong ramp-up in its existing customers – a primary driver of its premium growth rate,” J.P. Morgan writes. “CTSH's India-based costs (and wages) increased this year, but we believe sensitivities are very manageable and lower than peers'; we see enough levers in the business model to help offset such margin pressure.
“We continue to like CTSH for its attractive long-term growth potential and believe the stock is a core growth holding. CTSH remains our top ITS pick despite its premium multiple of 27x our CY11 EPS estimate vs. peers at 20x.”
Cognizant Technology Solutions closed Wednesday at $73.91.
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Posted In: Analyst RatingsCognizant Technology SolutionsInformation TechnologyIT Consulting & Other ServicesJ.P. Morgan
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