In a report released today, Surinder Thind from Jefferies reiterated a Buy rating on Cognizant (CTSH – Research Report), with a price target of $90.00.
Surinder Thind’s rating is based on Cognizant’s strong performance in the first quarter, which exceeded expectations in terms of revenue, adjusted operating margin, and adjusted EPS. Despite a cautious macroeconomic outlook, the company has shown resilience, particularly in its Healthcare and Financial Services sectors, which have driven growth. The Financial Services sector, in particular, has seen an increase in discretionary spending as clients focus on technology modernization.
Additionally, Cognizant’s ability to secure significant deals, including a mega deal with a total contract value exceeding $500 million, supports the company’s growth trajectory. Although the full benefits of these deals will materialize over time, they are expected to bolster organic growth. With Cognizant’s growth trending towards the higher end of its peer group and its valuation at a relatively lower end, Thind views the stock as attractive and anticipates a positive re-rating as the company continues to execute its strategy effectively.
In another report released today, Barclays also maintained a Buy rating on the stock with a $90.00 price target.
Based on the recent corporate insider activity of 100 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.