Analyst Tal Liani of Bank of America Securities maintained a Buy rating on Amdocs, retaining the price target of $97.00.
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Tal Liani has given his Buy rating due to a combination of factors that highlight Amdocs’ solid market position and growth potential. Despite the weaker than expected FY26 guidance, Liani maintains confidence in Amdocs, emphasizing that the company’s core business remains robust and that growth opportunities are on the horizon. The recent earnings report and subsequent investor inquiries have brought attention to key areas such as the relationship with T-Mobile and the anticipated growth acceleration in the second half of FY26.
One of the significant considerations is the transition of T-Mobile, Amdocs’ second-largest customer, to a new business support system. While this transition has led to a temporary slowdown, Amdocs will continue to provide managed services and network solutions, ensuring ongoing revenue streams. Additionally, the company has secured several large deals expected to contribute to revenue growth in the latter half of FY26. Furthermore, Amdocs has taken strategic steps to enhance its growth and margin profiles by discontinuing low-margin businesses, thereby positioning itself for stronger financial performance in the future.
In another report released on November 13, Barclays also maintained a Buy rating on the stock with a $111.00 price target.