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  "documentTitle": "Cognizant Technology Solutions (CTSH)",
  "authorId": "02_Elliott_Management",
  "authorName": "Jesse Cohn",
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  "presentationDate": "2016-11-28 00:00:00",
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  "notes": "Uses analyst quotes to build a case for capital return (dividends/buybacks) as a remedy for slowing growth.",
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      "kind": "callout",
      "text": "Cognizant has lowered FY16E guidance all three quarters so far this year",
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      "text": "Sampling of quotes from research analysts regarding capital allocation strategy.",
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      "text": "Revenue Growth: 8.9%",
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      "kind": "paragraph",
      "text": "Fortunately, Cognizant is well-positioned today to remedy this imbalance by enhancing its capital return policy and thereby signaling to the market that it is willing to take the steps necessary to deliver industry-leading returns.",
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      "text": "As the company matures, we believe management needs to offer a more sophisticated capital allocation strategy to reflect its size (both revenue and market capitalization) and stage of development. — Goldman Sachs, Sept. 2016; As Cognizant matures and its topline growth slows, the company’s overall capital return profile is increasingly important to investors. — Bernstein, Aug. 2016; Cognizant’s investors increasingly expect the company to return cash in the form of dividends and buybacks, specifically as its growth rates slow down and the stock transitions from being a growth story to a GARP/value stock — J.P. Morgan, Sept. 2016; …We believe the introduction of a regular dividend could broaden the appeal of the stock to new investors, while enhancing total shareholder return. In our view, gone are the days when investors look at the initiation of a dividend by a growth company as a negative. — Jefferies, Oct. 2016; In the recent past (last six to nine months), our positive bias of the company was largely driven by our belief that Cognizant would take on a more Accenture-like model, prioritizing capital returns to shareholders, especially in the form of a consistent dividend. On that front, we are disappointed with the company and have not seen any signs of the company moving in that direction. Given that this aspect of the story was a big driver of our Outperform rating, our diminished confidence has contributed to the downgrade. — William Blair, Nov. 2016",
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      "text": "Source: CapitalIQ as of November 25, 2016.",
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      "kind": "title",
      "text": "Evolution of Consensus Growth Estimates – Last Twelve Months",
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