Computer Sciences Corporation Demonstrated that its Fundamental Story Remains Intact, Morgan Stanley Reports

Computer Sciences Corporation CSC demonstrated that its “fundamental story remains intact, but given the relatively unchanged outlook (following its preannouncement on May 2nd) and the external issues that still need to be resolved and/or quantified, we expect shares to remain relatively range bound in the near-term (with recent news flow and valuation preventing more material downside),” Morgan Stanley writes. “In order for CSC to outperform, investors need to see an acceleration in growth driven by: 1) improved bookings metrics; 2) resolution of the NHS MOU and clarification of recent UK gov't comments; 3) resolution of ongoing Federal procurement delays; and 4) traction and scale in CSC's Cloud/Cyber initiatives,” Morgan Stanley writes. Computer Sciences Corporation closed Wednesday at $44.27.