CTSH Has An Attractive Long-Term Growth Potential

Analysts at JP Morgan reiterate their "overweight" rating on Cognizant CTSH. According to JP Morgan, “The overall message in CTSH’s 2Q10 Form 10-Q was consistent with the recent earnings call – strong growth across the board. CTSH’s European business grew at a very solid rate in 2Q, and the company plans to continue investing in the region.” “The growth upside, relative to expectations, appears to have stemmed from a surge in discretionary spending at the company’s existing clients. CTSH’s India-based costs (and wages) increased during the quarter, but we expect the trend to reverse in C2H with increased entry-level hiring. Finally, we see limited and manageable margin impact from the potential visa fee increase. We continue to like CTSH for its attractive long-term growth potential and believe the stock is a core growth holding,” the analysts add. More Analyst Ratings here