Goldman Sachs Reiterates Buy Rating on Sapient (SAPE)

Goldman Sachs is out with a research report this morning, where it reiterates its Buy rating on Sapient SAPE; it has a $15.50 price target on the stock. The GS analysts said that, following a meeting with company management, the collapse of the traditional lines between the CTO and CMO underpins a strong secular shift driving SAPE's Nitro segment and that management confirmed that it can drive its operating margin to the target “lower half” of 13%-16% in CY11 through increased pricing, improved effective utilization, and operating leverage. The analysts said, “SAPE one of the few investments with direct exposure to the twin waves of technology and secular growth of interactive spending. Together, these waves are expected to power robust revenue growth of 27%-28% through 2012. We expect future share performance to be powered by sustained leading revenue growth, and expanding operating margins.”