Cognizant (CTSH – Research Report), the Technology sector company, was revisited by a Wall Street analyst on March 25. Analyst James Schneider from Goldman Sachs maintained a Hold rating on the stock and has a $86.00 price target.
James Schneider has given his Hold rating due to a combination of factors that emerged from Cognizant’s recent Investor Day. While the event highlighted strategic and operational improvements under the new CEO, Ravi Kumar, and presented a promising financial outlook for 2025-27, there remains a level of uncertainty in the IT services market. This uncertainty has led to a cautious investor sentiment regarding the achievability of industry estimates.
Despite Cognizant’s efforts to focus on growth opportunities in AI and other verticals, and its plans for capital allocation and share repurchases, Schneider prefers to wait for more concrete evidence of Cognizant’s ability to capitalize on an upturn. The company’s strategic initiatives, such as leveraging AI for client wins and expanding into new markets, are promising, but Schneider believes other companies with more cyclical exposure may offer better opportunities at this time.
In another report released today, Mizuho Securities also maintained a Hold rating on the stock with a $87.00 price target.
CTSH’s price has also changed slightly for the past six months – from $75.530 to $78.820, which is a 4.36% increase.