Surinder Thind, an analyst from Jefferies, reiterated the Buy rating on Cognizant (CTSH – Research Report). The associated price target remains the same with $100.00.
Surinder Thind has given his Buy rating due to a combination of factors that highlight Cognizant’s strategic positioning and growth potential. The company is on a trajectory of accelerating revenue growth, aiming to place itself among the top performers within its peer group. Management’s aggressive AI strategy and the expansion of its total addressable market (TAM) are pivotal elements in this growth narrative. Cognizant’s significant investments in AI capabilities, alongside its growing cloud and data services, enhance its competitiveness in the evolving technology landscape.
Furthermore, Cognizant’s management has set a target for consistent margin expansion, projecting annual increases in operating margins despite acquisition-related headwinds. The company’s three-vector approach to AI, focusing on productivity, infrastructure, and enterprise transformation, is expected to drive new growth opportunities. Additionally, the increased share repurchase plans and a balanced capital allocation strategy underscore Cognizant’s commitment to returning value to shareholders while pursuing strategic acquisitions.
In another report released today, Barclays also maintained a Buy rating on the stock with a $103.00 price target.