Jefferies Believes Private Equity LBO's Could Occur In IT Services (CSC)

Jefferies & Co. believes that private equity leveraged buyout offers (LBO) could occur in the information technology sector, especially Computer Sciences Corp CSC. It raised CSC to Buy from Hold on this news. In the report, Jefferies writes, "We have performed a private equity/LBO screen across our coverage universe for stocks trading <15x earnings or at attractive EV/EBITDA multiples. Using a conservative equity check, and exit multiples no greater than current market valuation, we found that CSC, CACI, ICFI and WNS make the most attractive PE targets, with IRRs near or in excess of 20%." Shares of Computer Sciences Corp closed at $41.73 yesterday.