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 including Cognizant’s recent performance and future outlook. The company reported a strong first quarter with organic growth accelerating and earnings per share exceeding expectations. However, despite these positive results, there is a cautious outlook due to a fluid demand environment and macroeconomic challenges that could impact future growth.
Additionally, while Cognizant has seen increased demand for cost-reduction initiatives, there are signs of demand softness in certain sectors, particularly in client decision-making and discretionary spending. The company’s updated guidance reflects a favorable foreign exchange impact but maintains a cautious stance on constant currency growth. Overall, while Cognizant has shown resilience, uncertainties in the macro environment and post-2025 growth prospects contribute to the Hold rating.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $79.00 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.