Morgan Stanley analyst James Faucette has maintained their neutral stance on CTSH stock, giving a Hold rating yesterday.
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James Faucette’s rating is based on a combination of factors. Cognizant is expected to achieve modest organic growth of 0-3% year over year, alongside an additional 300 basis points from mergers and acquisitions. This outlook reflects the company’s balanced position between limited top-line growth visibility and an attractive valuation.
Furthermore, while there is potential for a 20-40 basis point expansion in operating margins due to operational streamlining and currency effects, uncertainties remain. These include the sustainability of growth in the Health Sciences sector and the potential impact of DOGE-related mandates on client spending, particularly because a substantial portion of revenue is derived from U.S. federal spending.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a $86.00 price target.
Based on the recent corporate insider activity of 100 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CTSH in relation to earlier this year.