NEW YORK (TheStreet) -- Computer Sciences Corp.  (CSC) stock was upgraded to "buy" from "hold" at Jefferies on Wednesday. The firm lowered its price target on the stock to $37 from $70.

The Falls Church, VA-based IT company was upgraded despite weak revenue growth, Jefferies said.

"Constant-currency revenue growth should soon benefit from easier comps and gradual abating of pressure from under-performing contracts, which have largely been restructured and/or will run-off," the firm noted. 

Management also remains solid on execution, with cash flow and margins improving under new leadership during the past three years, Jefferies added. 

"The team also has a strong track record of creating shareholder value and exceeding financial targets," the firm said.

Computer Sciences stock closed up 0.16% to $30.51 on Wednesday afternoon.

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 several positive factors, 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 largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.87, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.17, which illustrates the ability to avoid short-term cash problems.
  • Despite the weak revenue results, CSC has outperformed against the industry average of 27.0%. Since the same quarter one year prior, revenues fell by 11.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • COMPUTER SCIENCES CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COMPUTER SCIENCES CORP reported lower earnings of $0.04 versus $5.71 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $0.04).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the IT Services industry average, but is greater than that of the S&P 500. The net income increased by 10.6% when compared to the same quarter one year prior, going from $151.00 million to $167.00 million.
  • CSC has underperformed the S&P 500 Index, declining 21.31% from its price level of one year ago. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.
  • You can view the full analysis from the report here: CSC

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.