In a report released today, Sachin Mittal from DBS maintained a Buy rating on Cognizant (CTSH – Research Report), with a price target of $104.00.
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Sachin Mittal has given his Buy rating due to a combination of factors including Cognizant’s strong performance in securing large deals and the implementation of strategic initiatives. The company has shown a positive trajectory in its financial results, with adjusted net income exceeding expectations and a steady revenue forecast. This momentum is bolstered by Cognizant’s focus on cost efficiency and its ability to capitalize on client priorities, evidenced by significant deal signings in the last quarter.
Furthermore, Cognizant’s strategic initiatives such as the NextGen program and AI investments are expected to drive future growth and profitability. The program has already contributed to cost savings and operational efficiencies, indicating potential improvement in EBIT margins. Additionally, the valuation of Cognizant’s stock remains attractive compared to its peers, offering a 25% discount, which further supports the Buy rating despite challenges in certain segments and macroeconomic uncertainties.
In another report released on February 7, Barclays also maintained a Buy rating on the stock with a $95.00 price target.
Based on the recent corporate insider activity of 100 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CTSH in relation to earlier this year.