DXC

DXC Technology Company

TMT


Presented:11/18/2019
Price:$37.05
Cap:$9.48B
Current Price:$20.37
Cap:$3.68B

Presented

Date11/18/2019
Price$37.05
Market Cap$9.48B
Ent Value$24.39B
P/E RatioN/A
Book Value$33.45
Div Yield1.96%
Shares O/S256.00M
Ave Daily Vol5,118,234
Short Int6.27%

Current

Price$20.37
Market Cap$3.68B
DXC Technology Co. provides technology consulting, outsourcing and support services. It operates through the following segments: Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment provides technology solutions that help clients address challenges and accelerates the digital transformations that is tailored to each client's specific objectives. The GIS segment offers to deliver predictable outcomes and measurable results, while reducing business risk and operational costs for clients. The USPS segment delivers IT services and business solutions to all levels of government in the United States. The company was founded on 19th May, 2016 and is headquartered in Tysons, VA.

Publicly traded companies mentioned herein: Accenture Plc (ACN), DXC Technology Co (DXC), Goldman Sachs Group (GS)

Highlights

The presenter is long shares of DXC Technology Co (DXC), the Virginia-based IT services company. Shares of the stock have fallen ~35% YTD to the current ~$37 per share due to lowered guidance and second half earnings misses. At current prices, he considers it to be as interesting as it’s ever been. There are several layers to his bullish perspective including value creation through legacy business divestitures, an improved proforma with a more attractive business mix and strong management, and technical upside to the stock price. Combining these catalysts, the presenter reaches a price target of ~$70 per share, roughly 100% upside, based on a 10x multiple on his $7 FY2022 EPS estimate.

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Idea Discussion

Commentor 1 - 2 weeks ago

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