Analyst Bryan Bergin of TD Cowen maintained a Hold rating on Cognizant (CTSH – Research Report), retaining the price target of $80.00.
Bryan Bergin has given his Hold rating due to a combination of factors related to Cognizant’s current strategic position and future prospects. The company is undergoing significant leadership changes and strategic adjustments, which are expected to drive moderate growth and operational margin expansion in the coming years. However, the need for more evidence of a sustained growth turnaround remains a concern, as the company aims to return to industry-standard growth levels by 2026/2027.
Another key consideration in Bergin’s rating is Cognizant’s capital allocation strategy, which remains consistent but may see some flexibility due to lower merger and acquisition prospects. The company is also focusing on leveraging its capabilities in the emerging GenAI market, which presents both opportunities and threats. Additionally, efforts to improve employee morale and re-establish its brand as an employer of choice are underway, but the overall impact on the company’s performance is yet to be fully realized.
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.