Computer Sciences Course Tough to Follow

But the company's low debt-to-capital ratio -- at nearly 18% vs. 20% and higher for rivals -- makes it primed to make its own acquisitions, analysts and investors say. Even while takeover rumors were swirling, management talked about its "ample ability" to buy another company that offered long-term revenue and earnings growth.

Ambrose believes acquisitions are very likely in the company's future, particularly given management's stated goal of becoming second only to leader IBM(IBM) in the IT services market. "I don't know that anybody is going to be able to make that kind of move organically," says Ambrose. Ambrose pegs CSC as No. 4 or 5 in the market currently, with rivals EDS(EDS), Accenture(ACN) and Fujitsu also sharing the top spots.

Instead of pursuing vertical plays in industries like insurance or health care, CSC is more likely to make "opportunistic acquisitions" at a good price, Ambrose says. He says CSC is notably weaker than IBM and Accenture in consulting and systems integration but has started to show some strength in applications outsourcing.

But CSC competes well in the infrastructure space and has started to show strength in applications outsourcing -- experience that could ultimately bring the company closer to achieving its goal of becoming No. 2 in the IT services space, according to Ambrose.

>To order reprints of this article, click here: Reprints