Analyst James Faucette from Morgan Stanley maintained a Hold rating on Cognizant and keeping the price target at $80.00.
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James Faucette’s rating is based on Cognizant’s strategic acquisition of 3Cloud, which aligns with the company’s goal of enhancing its capabilities in AI services and cloud engineering. While this acquisition is expected to contribute to inorganic growth, the immediate impact on earnings per share is anticipated to be neutral due to integration costs.
Additionally, the acquisition reflects Cognizant’s commitment to its capital allocation strategy, which involves significant investment in mergers and acquisitions. Despite these positive strategic moves, the overall growth outlook remains moderate, leading to a Hold rating as the market evaluates the long-term benefits of these investments.
In another report released on October 30, TD Cowen also maintained a Hold rating on the stock with a $78.00 price target.
Based on the recent corporate insider activity of 112 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.