TD Cowen analyst Bryan Bergin maintained a Hold rating on Cognizant (CTSH – Research Report) yesterday and set a price target of $80.00.
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Bryan Bergin’s rating is based on a combination of factors that suggest cautious optimism for Cognizant’s stock. Although there is evidence of recovery in the company’s performance, the speed of this recovery remains slow. Cognizant’s guidance for the first quarter is in line with expectations, but the fiscal year 2025 revenue midpoint is slightly below projections. However, earnings per share (EPS) remain stable, supported by advantageous operating margins.
Cognizant’s bookings have shown improvement, particularly in large deals and average contract value, indicating some discretionary spending recovery. Yet, despite the positive signs, more evidence is needed to confirm a sustained growth trajectory. While Cognizant is transitioning from stabilization to growth, and the uncertainty is diminishing, the overall revenue outlook remains mixed. The company is expected to continue its gradual progress, but the market seeks more proof of consistent growth before a more favorable rating can be considered.
According to TipRanks, Bergin is a 5-star analyst with an average return of 9.2% and a 60.66% success rate. Bergin covers the Technology sector, focusing on stocks such as DXC Technology, Accenture, and Cognizant.
In another report released on February 4, Morgan Stanley also maintained a Hold rating on the stock with a $80.00 price target.