Bank of America Securities analyst Jason Kupferberg has reiterated their neutral stance on CTSH stock, giving a Hold rating yesterday.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Jason Kupferberg has given his Hold rating due to a combination of factors influencing Cognizant’s stock performance. While the company reported a solid fourth quarter with a notable beat on margins and earnings per share, the top-line revenue guidance for fiscal 2025 appeared softer than anticipated. The lack of acceleration in organic constant currency growth compared to the fourth quarter of 2024 suggests a cautious outlook, which may have contributed to the Hold rating.
Additionally, despite some positive demand commentary, particularly in financial services and healthcare, these improvements seem already priced into the stock. The valuation, with a price-to-earnings ratio of approximately 15.5 times the 2026 estimates, suggests a balanced risk/reward profile, reinforcing the Neutral stance. The initial guidance for fiscal 2025 revenues was modestly below consensus, although operational margin guidance was slightly ahead, providing a mixed evaluation for investors.
According to TipRanks, Kupferberg is a 2-star analyst with an average return of 0.1% and a 55.78% success rate. Kupferberg covers the Technology sector, focusing on stocks such as Shift4 Payments, Block, and Accenture.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $80.00 price target.