Mizuho Securities analyst Dan Dolev has maintained their neutral stance on CTSH stock, giving a Hold rating yesterday.
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Dan Dolev’s rating is based on a combination of factors including Cognizant’s recent performance and future outlook. The company posted stronger-than-expected results for the fourth quarter of 2024, reporting an organic constant currency growth of 2.2%, exceeding the midpoint of their guidance. However, the guidance for the fiscal year 2025 indicates potential growth challenges, with an anticipated growth range of 3.5% to 6.0%, which is below the consensus expectation of 5.7%.
Concerns have been raised about the extent to which mergers and acquisitions are contributing to the projected growth figures for FY25, a topic that Dan Dolev expects the company to clarify in forthcoming communications. Given these factors and the ongoing concerns about organic growth, a muted stock reaction is anticipated, justifying the Hold rating. This suggests a neutral stance, reflecting both the positive results and the uncertainties regarding future growth prospects.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $80.00 price target.
CTSH’s price has also changed moderately for the past six months – from $71.730 to $83.600, which is a 16.55% increase.