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Computer Sciences


on Monday said it inked a $48 million contract with

Whitbread Group

, a U.K.-based hospitality company.

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The five-and-a-half year deal replaces an earlier contract signed with the company in 2004. CSC will provide applications and desktop support, including data center services, email, Internet and intranet.

The new contract brings the total value of the deal to $222 million through March 2012.

"This new agreement represents a considerable change in operating model and provides flexibility, a different cost structure and a platform for growing the relationship in the future," Vanessa Reed, director of CSC's U.K. retail and leisure group said in a statement.

Separately, the IT services company was upgraded to buy from hold by Prudential analyst Bryan Keane, citing increased bookings, rising margins and more stock buybacks. His firm does not have a banking relationship with CSC.

CSC shares gained $1.31, or 2.7%, to $50.64 in recent trading.