Goldman Retains Conviction Buy On Sapient (SAPE)

Goldman Sachs is retaining its Conviction Buy on shares of Sapient SAPE, and is keeping its $15 price target on shares. In a note to clients, Goldman writes, "We reiterate our CL-Buy rating on SAPE which remains one of our top secular growth recommendations benefiting from the twin waves of technology and interactive spending. Together, these waves are expected to power robust average revenue growth of 27% through 2013, and faster 30%+ earnings growth. Although we acknowledge a more conservative range on its CY11 margin forecast (now in the 12%-14% range vs. 13%-14% previous), we see this forecast as appropriate as it factors in possible drags from higher attrition, wage inflation, and lower utilization. With intact long-term revenue growth of 27% and an operating margin target of 13%-16%, we believe that our thesis on SAPE remains intact, with the model capable of driving 30%+ long-term earnings growth." Shares of SAPE lost 25 cents yesterday to close at $12.99, a loss of 1.9%.