In a report released yesterday, George Notter from Wolfe Research downgraded Amdocs to a Hold, with a price target of $87.00.
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George Notter has given his Hold rating due to a combination of factors affecting Amdocs’s outlook. The primary concern is the absence of significant growth catalysts in the company’s fiscal year 2026 guidance, with no expected acceleration in revenue or margin expansion. Additionally, the commentary regarding T-Mobile, a major client, has raised concerns about potential financial pressures and reduced discretionary spending, which could impact Amdocs’s growth prospects.
Notter also notes that while Amdocs’s recent quarterly results were in line with expectations, the forward guidance was slightly below what was anticipated. The projected revenue and earnings per share growth for fiscal year 2026 are modest, and a significant portion of the sales growth is expected to be inorganic. Despite the stock trading at a discount compared to its historical valuation, Notter does not foresee any immediate catalysts that could drive a re-rating of the stock, leading to the Hold recommendation.
According to TipRanks, Notter is ranked #436 out of 10072 analysts.