DBS analyst Sachin Mittal has maintained their bullish stance on CTSH stock, giving a Buy rating on May 5.
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Sachin Mittal has given his Buy rating due to a combination of factors that highlight Cognizant’s strategic positioning and future growth prospects. The company has demonstrated strong deal momentum by securing four significant contracts in the first quarter of 2025, each valued at over USD100 million. This focus on large deals aligns with the company’s growth expectations for the fiscal year 2025.
Additionally, Cognizant’s NextGen program is expected to gradually improve EBIT margins by streamlining operations and achieving cost savings. The company’s investment in AI initiatives is also seen as a catalyst for future growth, enhancing its capabilities in platform modernization and infrastructure. Despite some challenges in the financial services segment and potential impacts from a global recession, the revised target price of USD95 reflects a positive outlook, supported by strategic investments and a competitive valuation compared to its peers.
In another report released on May 5, Barclays also maintained a Buy rating on the stock with a $90.00 price target.