NEW YORK (TheStreet) -- Shares of Computer Sciences (CSC) are climbing by 0.55% to $50.94 early Thursday morning, as Jefferies increased its price target to $63 from $36 and reiterated its "buy" rating on the stock.
"Our base case suggests the pending CSC/HPE merger could generate about $6+ of combined EPS (earnings per share) power in F18, assuming no top-line growth, and no upside to projected cost synergies (which is likely conservative)," Jefferies analysts said in an investor note.
Yesterday, the Tysons Corner, VA-based global IT provider announced its $8.5 billion merger with Hewlett Packard Enterprise's (HPE) IT businesses. Shares of Computer Sciences have been on the rise ever since the announcement.
In addition, the proposed deal is expected to produce cost synergies of about $1 billion in the first year.
Separately, TheStreet Ratings objectively rated Computer Sciences as a "buy" with a score of B-.
TheStreet Ratings rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
This is driven by a few notable strengths, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks that are covered.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and notable return on equity.
TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: CSC