Sapient: Goldman, Citi Bullish

Sapient (SAPE) today received a pair of high profile analyst endorsements.

• Citigroup analyst Leo Kulp upped the firm’s rating to Buy from Hold, with a new target of $14.50, from $11. Kulp also raised his 2010 EPS forecast to 32 cents from 31 cents; for 2011 he goes to 53 cents, from 46 cents, and for 2012, now sees 70 cents, up from 62 cents. Kulp notes that the company has transition from a traditional IT consulting firm to one generating more than half of its revenue from digital market, with most of the rest focusing on trading/risk management. “We think valuation suffers since its new model doesn’t fit cleanly into the traditional IT services space,” he writes. “as media investors become more focused on Sapient’s digital marketing exposure, we expect valuation to improve.”
• Goldman Sachs analyst Julio Quinteros, Jr., added the stock to the firm’s Conviction Buy List, with a $13 price target. “Given its unique blend of tech and interactive capabilities, we find SAPE poised for 20%-plus revenue growth through CY 2012,” he writes. “SAPE is well-positioned to benefit from a cycle recovery in tech and marketing spend, and the secular shift toward multichannel commerce and digital marketing.”

SAPE replaced Accenture (ACN) on the Goldman Conviction Buy List; ACN remains Buy rated.

SAPE is up 4 cents, to $10.33; ACN is down 91 cents, or 2.1%, to $42.84.