EDS gets credit for signing new contracts and cost cutting.
Lehman Brothers on Tuesday raised its investment rating on Electronic Data Systems to overweight from equal weight after noting the technology outsourcer's success in signing new contracts and its commitment to cost cutting.
In a research report, Lehman analyst Alan Hellawell noted that EDS plans to reduce overall headcount by 5,000 this year while increasing hiring "in lower cost geographies such as India, China, and Eastern Europe."
Earlier this month, EDS reported that third-quarter contract signings increased 28% year-over-year while net income climbed 83% to $128 million. Lehman on Tuesday set a target price on EDS's stock of $32. It's currently trading just over $27.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.