Stock Update (NYSE:CSC): Computer Sciences Corporation Named 2nd Consecutive Annual Leader by Everest Group for Provider IT Healthcare Services


Computer Sciences Corporation (NYSE: CSC) announced that it has been recognized as a “Leader” for the second year in Everest Group’s 2016 “Provider IT Healthcare Services – Service Provider Landscape with PEAK Matrix Assessment.”

Developed by Everest Group, a global consulting and research firm, the PEAK (Performance, Experience, Ability, Knowledge) Matrix is a framework that assesses the relative market success and overall capability of service providers in various industries. This particular PEAK Matrix evaluated 22 IT service providers specific to the global healthcare provider sector.

“Healthcare is one of the few industries that looks at technology transformation to create breakthrough value. Whether it is patient engagement, cost takeout or legacy transformation, technology is at the core of what the industry wants to achieve,” said Abhishek Singh, practice director, Healthcare, Everest Group. “CSC has leveraged its healthcare technology expertise to align with the objectives of this industry. They have created capabilities that go beyond the traditional North American/large hospital systems market and address provider segments globally,” said Singh.

CSC earned its “Leader” position because it offers significant presence across all provider service lines, including large healthcare systems and stand-alone hospitals and clinics. CSC showcased strong domain expertise in the healthcare field, which is extremely important when clients are looking for a technology partner to meet their cost containment and regulatory compliance agenda. Recent acquisitions of Xchanging and UXC Limited, as well as strategic alliances with other next-generation technology players in the healthcare market, were highlighted by the report because they enable clients to future-proof their IT investments.

Other specific strengths of CSC cited in the report include:

  • The variety of proprietary offerings including Population Health Enablement and Care Coordination, Lorenzo Electronic Medical Record (EMR), Hospital Infrastructure solutions (including cybersecurity, workplace services and storage as a service) and the CSC Agility Platform for hybrid cloud management;
  • The ability of CSC to focus efforts on the unique nuances, opportunities and challenges of specific buyer markets; and
  • A strong global presence across the payer-provider spectrum that allows for significant cross/upselling opportunities.

“Our Agile Health approach, coordinated care solutions and innovative technology help healthcare providers create a platform for digital success,” said Andrea Fiumicelli, vice president and general manager, CSC Healthcare and Life Sciences. “Agile Health is about using effective applications, efficient cloud-based and hybrid architectures, as well as flexible analytics to deliver better health outcomes for individual patients and whole populations. Our offerings go beyond technology and focus on ecosystem-wide healthcare transformation.” (Original Source)

Shares of Computer Sciences Corp. closed yesterday at $59.33. CSC has a 1-year high of $63.34 and a 1-year low of $24.27. The stock’s 50-day moving average is $60.60 and its 200-day moving average is $52.91.

On the ratings front, Computer Sciences has been the subject of a number of recent research reports. In a report issued on December 18, BMO analyst Keith Bachman reiterated a Buy rating on CSC, with a price target of $70, which implies an upside of 18% from current levels. Separately, on November 29, Cantor Fitzgerald’s Joseph Foresi reiterated a Hold rating on the stock and has a price target of $58.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Keith Bachman and Joseph Foresi have a yearly average return of 9.5% and 2.2% respectively. Bachman has a success rate of 54% and is ranked #373 out of 4348 analysts, while Foresi has a success rate of 52% and is ranked #1587.

Overall, 2 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $64.60 which is 8.9% above where the stock closed yesterday.

Computer Sciences Corp. provides information technology solutions. It operates through the Global Business Services, Global Infrastructure Services segments. The Global Business Services segment provides technology solutions including consulting, applications services, and software. The Global Infrastructure Services segment provides managed and virtual desktop solutions, unified communications and collaboration services, data center management, cyber security, cloud solutions, cloudmail and storage as a Service, compute and managed storage solutions.