Oppenheimer Reiterating Overweight On Computer Sciences (CSC)

Oppenheimer & Co. is reiterating its Outperform and $55 price target on shares of Computer Sciences Corp. CSC. In a research report sent to clients Oppenheimer writes, "CSC announced a surprising large-scale share repurchase program and a substantial increase in the firm's dividend, signaling increasing confidence in business outlook over the coming year. Specifically, CSC hiked dividend by 33%, and instituted a $1B share repurchase program, the firm's first since the March '08 fiscal year. Based on our analysis, the buyback should be accretive by about 11-13% to FY12E EPS. Importantly, these announcements highlight management's confidence in business and cash flow prospects going forward. We continue to believe that operational performance has stabilized, which, coupled with improved clarity on the UK NHS contract, should help support top-line trends over the coming quarters." Shares of CSC lost 20 cents yesterday to close at $46.91.