Cognizant price target lowered to $75 from $80 at Goldman Sachs

Goldman Sachs lowered the firm’s price target on Cognizant (CTSH) to $75 from $80 and keeps a Neutral rating on the shares after its Q1 results and below-consensus Q2 revenue guide. Investors anticipated solid results balanced against a tepid macro backdrop, and although the company’s announced Project Leap lifted operating margin and EPS guidance, its gross margins still faced pressure this quarter due to the ramp-up of large deals and increased investments, the analyst tells investors in a research note. The company has made solid progress in pivoting toward stronger growth, but the firm could be more constructive on the stock pending evidence that Cognizant can capture rising AI demand.