Morgan Stanley analyst James Faucette has maintained their neutral stance on CTSH stock, giving a Hold rating on April 23.
James Faucette has given his Hold rating due to a combination of factors impacting Cognizant’s outlook. The anticipated slowdown in bookings growth is expected to lead to a slight reduction in the company’s revenue growth forecast for CY25, which may affect investor sentiment. Despite this, there is a neutral to slightly positive sentiment among investors, with some preferring to hold the stock based on the belief that sell-side estimates will not see significant cuts.
Additionally, while there are concerns about macroeconomic volatility and its impact on client spending, certain sectors like Financial Services and Healthcare are expected to provide some stability for Cognizant. The company’s ability to manage expectations effectively and the potential benefit from easier comparisons in the first quarter of 2025 also support the Hold rating. Overall, the mixed factors of potential growth challenges and sector-specific strengths contribute to the cautious outlook.
Faucette covers the Technology sector, focusing on stocks such as Endava, Block, and Cognizant. According to TipRanks, Faucette has an average return of 4.7% and a 62.53% success rate on recommended stocks.