DXC Technology price target lowered to $16 from $22 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on DXC Technology (DXC) to $16 from $22 and keeps an Equal Weight rating on the shares. The firm thinks FY26 guidance targets slightly underperformed investor expectations, as it believes some investors were expecting a faster return to growth and profitability. Incremental investment in FY26 likely keeps adjusted EBIT margins rangebound at 7%-8%, which brings adjusted EPS to $3 at the midpoint versus $3.43 in FY25, notes the analyst, who awaits signs of broad-based improvement and scale before “awarding credit.”