BMO Capital analyst Keith Bachman maintained a Hold rating on Cognizant (CTSH – Research Report) yesterday and set a price target of $94.00.
Keith Bachman has given his Hold rating due to a combination of factors influencing Cognizant’s current market position. While there are growth opportunities, particularly with the rising demand for generative AI and improved company morale, the overall IT services sector faces challenges. Macroeconomic uncertainties and questions about the long-term impact of generative AI on the supply side create a cautious outlook.
Furthermore, despite Cognizant’s strategic partnerships and efforts to enhance digital labor solutions, the balance between revenue growth and margin expansion remains a concern. The company’s improved partnerships with major players like Azure, ServiceNow, and NVIDIA are promising, but the broader market dynamics present a mixed picture. As such, the Hold rating reflects these complexities and uncertainties in both the near-term and long-term perspectives.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $80.00 price target.
CTSH’s price has also changed slightly for the past six months – from $75.530 to $78.820, which is a 4.36% increase.