Goldman Sachs Reiterates Cognizant Technology Solutions Buy Rating (CTSH)

A study published Wednesday by Goldman Sachs regarding IT services reiterates its Buy rating for Cognizant Technology Solutions CTSH and placed the company on its Conviction Buy List. Goldman Sachs also increased CTSH's PT to $87 from $80. Goldman Sach states, "Among the key themes supporting our positive view on the Consulting names is offshore's secular growth, which we believe remains well intact with various factors expanding the long-term prospects for global service delivery including low penetration, client focus on cost efficiency, and model evolution efforts toward higher-end services. We expect that CTSH will be a leading beneficiary of offshore's robust growth profile, supporting our revenue growth forecast of 30% in CY11 and 27% in CY12. Our CY11/CY12 EPS are 2%/7% above the consensus estimates." CTSH shares are currently trading at $74.50, -0.9% from Wednesday's market close.