Goldman Upgrading Cognizant Technology Solutions To Buy (CTSH)

Goldman Sachs is upgrading Cognizant Technology Solutions Corp. CTSH to Buy and has a $80 price target on shares. In a note sent to investors Goldman writes, "Following our trip to India, we come away with increased confidence that offshore's growth trajectory is well intact with various factors expanding the long-term prospects for global service delivery. We expect that CTSH will be a leading beneficiary of offshore's robust growth profile, supporting our higher revenue growth forecast of 30% in CY11 and 27% in CY12 (from 25% and 20%). Reflecting our higher growth expectations, we upgrade to Buy from Neutral and raise our CY11 and CY12 EPS estimates to $2.72 and $3.43 (from $2.63 and $3.15). Consistent with these changes and assuming a higher CY11 multiple, we are raising our 12-month PT to $80 ($71), implying 15% upside." Shares of CTSH closed at $69.31, a loss of 1 cent on Friday.