Jefferies Assumes Coverage on Cognizant Technology at Buy

Jefferies is out with its report today on Cognizant Technology CTSH, assuming coverage on CTSH at Buy. In a note to clients, Jefferies writes, "We see CTSH as having the best combination of growth and execution in the sector. We think shares have unjustly sold-off since 1Q earnings (expectations may have simply been too high), and believe management maintains a conservative approach to guidance. The current multiple of 21x CY 2012 EPS represents an attractive entry point. We think concerns regarding 2Q are overdone." Jefferies lowers its PT from $89 to $86. Shares of CTSH closed Monday at $71.88, up 1.04% from Friday's close.