Amit Daryanani, an analyst from Evercore ISI, has initiated a new Buy rating on Cognizant (CTSH).
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Amit Daryanani has given his Buy rating due to a combination of factors that suggest Cognizant is poised for significant growth. The company is expected to benefit from large-scale deals and advancements in artificial intelligence, which are anticipated to drive productivity and organic growth. Cognizant’s strong position in key markets, particularly healthcare, where it holds substantial domain expertise, further supports this positive outlook.
Amit also highlights Cognizant’s robust free cash flow and shareholder-friendly capital allocation strategy, which includes dividends, share repurchases, and strategic mergers and acquisitions. Additionally, the stock is currently trading at a discount compared to its historical average, presenting an attractive valuation. These elements combined suggest that Cognizant is well-positioned to achieve earnings growth that surpasses revenue growth, potentially leading to a higher stock valuation.
According to TipRanks, Daryanani is a 5-star analyst with an average return of 15.4% and a 62.53% success rate. Daryanani covers the Technology sector, focusing on stocks such as Apple, Arista Networks, and Hewlett Packard Enterprise.
In another report released on July 7, Jefferies also maintained a Buy rating on the stock with a $95.00 price target.