TD Cowen analyst Bryan Bergin has maintained their neutral stance on CTSH stock, giving a Hold rating on March 17.
Bryan Bergin’s rating is based on Cognizant’s strategic initiatives and financial framework, which aim for significant growth by 2027. The company has outlined a clear vision for medium-term growth, targeting top quartile performance among its peers, and has committed to expanding its operating margins annually. However, the immediate demand outlook remains unclear, as the company did not provide specific near-term performance details or changes in client demand.
Despite the lack of near-term demand clarity, Cognizant’s consistent execution and strategic investments position it well for future growth. The company’s plans to increase share repurchases and maintain capital allocation strategies are positive indicators. Nevertheless, the current valuation and market uncertainties suggest a stable outlook, warranting a Hold rating until more consistent quarterly performance is observed.
In another report released on March 17, UBS also maintained a Hold rating on the stock with a $88.00 price target.
Based on the recent corporate insider activity of 102 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.