Cognizant initiated with an Overweight at Wells Fargo

Wells Fargo analyst Jason Kupferberg initiated coverage of Cognizant (CTSH) with an Overweight rating and $82 price target as the firm initiated coverage on 20 stocks in the Payments, Processors, and IT Services sector. Sentiment is “glass half-empty” for many stocks, the analyst tells investors in a research note. Within the spectrum of cyclical versus structural risks, Wells sees IT Services leaning somewhat more toward structural challenges, particularly those tied to AI, which is viewed as driving a transition phase for the sector. The firm thinks Cognizant can print upside to near-term estimates.