The Freeland File
Global Market Data
Tales from the Trail
Lucy P. Marcus
David Cay Johnston
The Great Debate
Jack & Suzy Welch
Macro & Markets
Lipper Awards 2012
Personal Finance Video
Friend flees Assad as U.S. pressures Russia
Contest may send rapper Pitbull to Alaska Wal-Mart
05 Jul 2012
Virus could black out nearly 250,000 PCs
05 Jul 2012
Dismal U.S. hiring shows economy stuck in low gear
Wall Street skids lower on jobs gloom
In California, immigration bill designed as the ”anti-Arizona”
Insight: ”Green Fleet” sails, meets stiff headwinds in Congress
Mormons quit church in mass resignation ceremony
Market Pulse: Non farm payrolls - euro sell signal?
Samsung sales rocket, but risks loom beyond Galaxy
Word spreads of defected Syrian general
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
A look at the life and legacy of Palestinian leader Yasser Arafat. Slideshow
From the scientists on the ground to stunning views from space, a look at man's continuing exploration into the final frontier. Slideshow
Berenberg cuts Cognizant, VMware to hold
Fri Jul 6, 2012 6:10am EDT
(Reuters) - Sales at global IT companies are likely to come under pressure, hurt by slowing spending and weakening European demand, Berenberg said, downgrading Cognizant Technology Solutions Corp and VMware Inc.
Europe is contracting, growth in the United States has slowed and the Japanese recovery seems to have stalled, analysts led by Daud Khan wrote in a note to clients.
"While we do not expect a blood bath (in the sector) in Q2, the prospects for guidance downgrades for the full year are likely," said the analysts, cutting their rating on both stocks by a notch to "hold."
Berenberg also cut its price target on Cognizant to $55 from $83 and on VMware to $90.0 from $112.5. Cognizant shares had closed at $60.22 on the Nasdaq on Thursday, while VMware ended the day at $90.21 on the New York Stock Exchange.
Last month, J.P. Morgan Securities lowered its outlook for growth in IT spending in 2012, amid rising macroeconomic uncertainties in Europe and the United States.
Europe's sovereign debt crisis has shaken investor and consumer confidence, forcing major technology companies such as Cisco Systems Inc and Dell Inc to scale back expectations for IT spending there.
However, Berenberg upgraded engineering software maker Aveva Group Plc and enterprise software company Sage Group Plc to "buy" from "hold," saying potential acquisitions are likely to boost revenue.
Aveva shares were up more than 3 percent at 1,750 pence on the London Stock Exchange by 5.30 a.m. EDT.
(Reporting by Sagarika Jaisinghani in Bangalore; Editing by Sreejiraj Eluvangal)
Related Quotes and News
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Be the first to comment on reuters.com.
Add yours using the box above.
Back to top
New York Legal
Support & Contact
Connect with Reuters
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
About Thomson Reuters
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.