Sachin Mittal, an analyst from DBS, maintained the Buy rating on Cognizant (CTSH – Research Report). The associated price target was lowered to $85.00.
Sachin Mittal has given his Buy rating due to a combination of factors including Cognizant’s strong deal momentum and strategic focus on large contracts. In the fourth quarter of 2024, the company signed ten significant deals, each valued at over USD100 million, indicating robust business activity and potential for revenue growth. The company’s revenue guidance for the first quarter and full year of 2025 aligns with market expectations, suggesting stability and confidence in its financial outlook.
Cognizant’s NextGen program is expected to gradually improve its EBIT margin by streamlining operations and achieving cost savings. Additionally, the company’s investment in AI initiatives, particularly in GenAI capabilities, is driving future growth and enhancing operational efficiency. Despite a lower target price due to a decline in peer average forward P/E, Mittal’s Buy rating reflects the company’s strategic initiatives and potential for profitable growth, albeit with some risks from its financial services segment and macroeconomic challenges.
In another report released yesterday, Susquehanna also upgraded the stock to a Buy with a $90.00 price target.