Needham analyst Mayank Tandon has maintained their neutral stance on CTSH stock, giving a Hold rating today.
Mayank Tandon has given his Hold rating due to a combination of factors including the current economic environment and Cognizant’s strategic initiatives. During the recent investor day, Cognizant’s management emphasized their focus on GenAI solutions and data modernization as key drivers for future growth. These initiatives have already led to the signing of several large deals, showcasing the potential for positive developments.
Despite these promising strategies, Tandon remains cautious due to the broader industry’s muted spending trends, particularly in discretionary IT projects, which are influenced by economic uncertainties. Additionally, while Cognizant’s stock is attractively valued, Tandon believes that the shares are likely to remain stable until there is a significant improvement in the company’s organic growth trajectory. Therefore, he maintains a Hold rating, reflecting a balanced view of the company’s prospects and current market conditions.
In another report released today, Mizuho Securities also maintained a Hold rating on the stock with a $87.00 price target.