Citigroup Remains Confident In Cognizant Technology Solutions

Citigroup said that it believes that, for the rest of this year, Cognizant Technology Solutions (NASDAQ: CTSH) could work modestly higher from current levels but it is likely to be quite volatile.

“The next serious catalyst for the stock is in early Feb-2011 when it gives formal 2011 financial guidance,” Citigroup writes. “We remain confident in our unchanged (significantly above-consensus) 28% revenue growth for 2011 – consensus has recently risen from the ~22% growth level to ~24%.”

Citigroup said that for some investors who are focused on locking in their gains (CTSH is up 43% this year), getting back into the stock before this catalyst is an acceptable approach.

“Investors with a longer-term view than a few months should stay the course / buy more, in our view,” Citigroup adds.

Cognizant Technology Solutions currently trades at $65.04.