Nov 28 (Reuters) - Activist investor Elliott Management Corp disclosed a more than 4 percent stake in Cognizant Technology Solutions and urged the IT services provider to take steps to boost shareholder value.
“We believe that Cognizant can achieve a value of $80-$90+ per share by the end of 2017, representing upside of 50-69 percent in just over a year,” Elliott Senior Portfolio Manager Jesse Cohn said in a letter to Cognizant’s board on Monday.
The company’s shares rose 10.4 percent to $58.87 in premarket trading. Up to Friday’s close, the stock had fallen about 11 percent this year.
Elliott, which also requested a meeting with Cognizant’s board, recommended that the company should repurchase $2.5 billion in shares over the first half of 2017. (Reporting by Laharee Chatterjee in Bengaluru; Editing by Saumyadeb Chakrabarty)