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Fly News Breaks for May 25, 2016
HPE, CSC
May 25, 2016 | 07:29 EDT
Citi analyst Ashwin Shirvaikar believes CSC (CSC) didn't solve its "real issues" by merging with the Enterprise Services division of HP Enterprise (HPE). The analyst says he's not convinced as to why being bigger in a declining end-market is a good thing. IT Services today is about transitioning to digital, mobility and analytics, Shirvaikar tells investors in a research note. He admits, however, that the cost synergies from the merger are "solid" and "believable." The analyst raised his price target for CSC shares to $44 from $30 and keeps a Neutral rating on the name.
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