Analyst Jason Kupferberg from Bank of America Securities maintained a Hold rating on Cognizant (CTSH – Research Report) and keeping the price target at $91.00.
Jason Kupferberg has given his Hold rating due to a combination of factors. One of the primary reasons is the uncertainty surrounding Cognizant’s post-2025 organic growth rate, despite the company’s impressive turnaround efforts so far. The upcoming investor day is expected to shed light on Cognizant’s strategy to join the “Winner’s Circle” in the IT Services industry, but the path forward remains challenging.
Additionally, while Cognizant is anticipated to provide multi-year financial targets, the macroeconomic uncertainty makes it difficult to predict a specific growth range. The company’s current growth is in line with its peers, and the medium-term outlook suggests plans to outgrow them. Furthermore, modest operating margin expansion and a significant return of cash to shareholders are expected, but the overall macro volatility and cautious recovery in discretionary IT spending contribute to the Hold rating.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $80.00 price target.