Computer Services & IT Consulting - Deutsche Banc Alex. Brown's Mark D'Annolfo Expands Research Coverage of the Sector

Apr 05, 2001, 01:00 ET from Deutsche Banc Alex. Brown

    NEW YORK, April 5 /PRNewswire/ -- Deutsche Banc Alex. Brown analyst Mark
 D'Annolfo yesterday expanded research coverage of the Computer Services and IT
 Consulting sector with the initiation of Fiserv Inc. (Nasdaq: FISV)($45.43) at
 a BUY investment rating, and Computer Sciences Corporation (NYSE:   CSC)($30.10)
 and KPMG Consulting Inc. (Nasdaq: KCIN)($12.00) rated MARKET PERFORM.
     According to D'Annolfo's investment thesis, the sector has experienced a
 shift away from Internet-type engagements back to more traditional,
 enterprise-wide systems integration projects.  In addition, he said buyer
 momentum was shifting toward larger tier integrators and is focused more on
 maintenance and support.
     D'Annolfo also sees a "return to outsourcing," in which companies look to
 traditional computer services providers to reduce IT costs.  Traditional
 outsourcing is the largest portion of the IT services spend, according to
 D'Annolfo, and generates a high level of recurring revenue.  Accordingly, he
 recommended that investors reweigh IT services exposure to areas receiving
 less spending scrutiny and monitor the top IT consulting names for signs of
 market turn.
     In D'Annolfo's opinion, the companies best positioned to take advantage of
 the outsourcing opportunity are Fiserv, as well as EDS (NYSE:   EDS)($53.50),
 which is currently under coverage and rated BUY.
 
     Deutsche Banc Alex. Brown represents the Investment Banking activities of
 Deutsche Banc Alex. Brown Inc. (US) and Deutsche Bank Securities Ltd.
 (Canada).  Deutsche Banc Alex. Brown and Deutsche Bank Securities Ltd. are
 subsidiaries of Deutsche Bank AG.  With over EUR995 billion in assets as of
 September 30, 2000 and approximately 95,000 employees, Deutsche Bank offers
 its clients unparalleled financial services throughout the world.  It ranks
 among the leaders in asset management, capital markets, corporate finance,
 custody, cash management and private banking.  Deutsche Bank is divided into
 five major business units: Global Corporates and Institutions, Global
 Technology and Services, Asset Management, Corporates and Real Estates and
 Private and Retail Banking.
 
     Deutsche Banc Alex. Brown Inc. maintains a net primary market in the
 common stock of Computer Sciences Corporation and Fiserv, Inc.
 
     The following stock(s) is (are) optionable: Computer Sciences Corporation
 and Fiserv Inc.
 
     Information herein is believed to be reliable and has been obtained from
 sources believed to be reliable, but its accuracy and completeness cannot be
 guaranteed.  Opinions, estimates, and projections constitute our judgement and
 are subject to change without notice.  This publication is provided to you for
 information purposes only and is not intended as an offer or solicitation for
 the sale of any financial instrument.  Deutsche Banc Alex. Brown Inc. and its
 affiliates worldwide, may hold a position or act as market maker in the
 financial instruments of any issuer discussed herein or act as advisor or
 lender to such issuer.  Transactions should be executed through a Deutsche
 Bank entity in the client's home jurisdiction unless otherwise permitted by
 law.  Deutsche Banc Alex. Brown Inc. is a member of NYSE and NASD.
 
 

SOURCE Deutsche Banc Alex. Brown
    NEW YORK, April 5 /PRNewswire/ -- Deutsche Banc Alex. Brown analyst Mark
 D'Annolfo yesterday expanded research coverage of the Computer Services and IT
 Consulting sector with the initiation of Fiserv Inc. (Nasdaq: FISV)($45.43) at
 a BUY investment rating, and Computer Sciences Corporation (NYSE:   CSC)($30.10)
 and KPMG Consulting Inc. (Nasdaq: KCIN)($12.00) rated MARKET PERFORM.
     According to D'Annolfo's investment thesis, the sector has experienced a
 shift away from Internet-type engagements back to more traditional,
 enterprise-wide systems integration projects.  In addition, he said buyer
 momentum was shifting toward larger tier integrators and is focused more on
 maintenance and support.
     D'Annolfo also sees a "return to outsourcing," in which companies look to
 traditional computer services providers to reduce IT costs.  Traditional
 outsourcing is the largest portion of the IT services spend, according to
 D'Annolfo, and generates a high level of recurring revenue.  Accordingly, he
 recommended that investors reweigh IT services exposure to areas receiving
 less spending scrutiny and monitor the top IT consulting names for signs of
 market turn.
     In D'Annolfo's opinion, the companies best positioned to take advantage of
 the outsourcing opportunity are Fiserv, as well as EDS (NYSE:   EDS)($53.50),
 which is currently under coverage and rated BUY.
 
     Deutsche Banc Alex. Brown represents the Investment Banking activities of
 Deutsche Banc Alex. Brown Inc. (US) and Deutsche Bank Securities Ltd.
 (Canada).  Deutsche Banc Alex. Brown and Deutsche Bank Securities Ltd. are
 subsidiaries of Deutsche Bank AG.  With over EUR995 billion in assets as of
 September 30, 2000 and approximately 95,000 employees, Deutsche Bank offers
 its clients unparalleled financial services throughout the world.  It ranks
 among the leaders in asset management, capital markets, corporate finance,
 custody, cash management and private banking.  Deutsche Bank is divided into
 five major business units: Global Corporates and Institutions, Global
 Technology and Services, Asset Management, Corporates and Real Estates and
 Private and Retail Banking.
 
     Deutsche Banc Alex. Brown Inc. maintains a net primary market in the
 common stock of Computer Sciences Corporation and Fiserv, Inc.
 
     The following stock(s) is (are) optionable: Computer Sciences Corporation
 and Fiserv Inc.
 
     Information herein is believed to be reliable and has been obtained from
 sources believed to be reliable, but its accuracy and completeness cannot be
 guaranteed.  Opinions, estimates, and projections constitute our judgement and
 are subject to change without notice.  This publication is provided to you for
 information purposes only and is not intended as an offer or solicitation for
 the sale of any financial instrument.  Deutsche Banc Alex. Brown Inc. and its
 affiliates worldwide, may hold a position or act as market maker in the
 financial instruments of any issuer discussed herein or act as advisor or
 lender to such issuer.  Transactions should be executed through a Deutsche
 Bank entity in the client's home jurisdiction unless otherwise permitted by
 law.  Deutsche Banc Alex. Brown Inc. is a member of NYSE and NASD.
 
 SOURCE  Deutsche Banc Alex. Brown