Sapient: One Of Goldman's Top Secular Growth Stories (SAPE)

Goldman Sachs is out with a research note on Sapient SAPE and calls the name one of its top secular growth stories, if the company can execute on margins. It has a Buy rating and a $15 price target. In a note to clients, Goldman writes, "SAPE remains one of our top secular growth recommendations benefiting from the twin waves of interactive marketing initiatives and financial services tech spend to address recent regulatory reform. Together, we expect these drivers to underpin robust average revenue growth of 27% through 2013, and faster 30%+ earnings growth on modest margin expansion. While we acknowledge investor concern with SAPE's margin execution in 2010, we believe that the margin in CY11 is set to benefit from improved pricing and labor dynamics. Our estimates are unchanged. We retain our 12-month price target of $15, suggesting 24% upside potential." Shares of SAPE closed at $12.05 yesterday.