NEW YORK (TheStreet) -- Barclays increased its price target on Computer Sciences Corp. (CSC) to $67, increased its estimates and set an "equal weight" rating. Top-line growth momentum drove the firm's decision.
The stock was flat when the market opened on Monday.
Separately, TheStreet Ratings team rates COMPUTER SCIENCES CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMPUTER SCIENCES CORP (CSC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, CSC's share price has jumped by 42.21%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CSC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The debt-to-equity ratio is somewhat low, currently at 0.74, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, CSC has a quick ratio of 1.50, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 1236.58% to $548.00 million when compared to the same quarter last year. In addition, COMPUTER SCIENCES CORP has also vastly surpassed the industry average cash flow growth rate of -20.33%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the IT Services industry and the overall market on the basis of return on equity, COMPUTER SCIENCES CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: CSC Ratings Report