Business & Finance
11:13 AM

Lehman Bros. Upgrades EDS To Overweight

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.

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
Increasing IT Agility and Speed To Drive Business Growth
Learn about the steps you'll need to take to transform your IT operation and culture into an agile organization that supports business-driving initiatives.
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.