Barclays Believes CSC Won’t Stop Here

By Ryan Adsit

Barclays analyst Darrin Peller reiterated a Buy rating on Computer Sciences (NYSE: CSC) today and set a price target of $68. The company’s shares opened today at $61.09, close to its 52-week high of $61.57.

Peller said:

“We are increasing our CY18 pro-forma EPS to $8.00 (old: $7.98) and apply a 9x (old: ~8.5x) multiple, and a 5% (old: 8%) discount to account for the potential of a deal break, to arrive at our new PT of $68 (old: $62). Synergy sources: With an additional few months of visibility, mgmt reiterated its confidence in $1 bn in Y1 synergies and a $1.5 bn run-rate exiting the year. Synergies are expected to come from three buckets, including (1) Corporate policies; (2) Duplication, and (3) Physical assets.”

According to, Peller is a 5-star analyst with an average return of 9.9% and a 61.8% success rate. Peller covers the Technology sector, focusing on stocks such as Broadridge Financial Solutions Llc, Fidelity National Info, and Epam Systems Inc.

Currently, the analyst consensus on Computer Sciences is Moderate Buy and the average price target is $62.60, representing a 2.5% upside.

In a report issued on November 3, Jefferies also reiterated a Buy rating on the stock with a $63 price target.

The company has a one year high of $61.57 and a one year low of $24.27. Currently, Computer Sciences has an average volume of 1.76M.

Based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is negative on the stock. Last month, John Lawrie, the President & CEO of CSC sold 4,110 shares for a total of $227,753.

Computer Sciences Corp. provides information technology solutions. It operates through the Global Business Services, Global Infrastructure Services segments. The Global Business Services segment provides technology solutions including consulting, applications services, and software. The Global Infrastructure Services segment provides managed and virtual desktop solutions, unified communications and collaboration services, data center management, cyber security, cloud solutions, cloudmail and storage as a Service, compute and managed storage solutions. The company was founded by Roy Nutt and Fletcher Roseberry Jones on April 16, 1959 and is headquartered in Tysons, VA.