Jason Kupferberg, an analyst from Bank of America Securities, maintained the Hold rating on Cognizant (CTSH – Research Report). The associated price target remains the same with $91.00.
Jason Kupferberg has given his Hold rating due to a combination of factors related to Cognizant’s strategic positioning and financial outlook. The company’s recent investor day highlighted an optimistic tone and showcased strong leadership and customer engagement, particularly in the area of Generative AI. However, despite these positive aspects, there remains uncertainty about Cognizant’s organic growth rate beyond 2025, which poses potential challenges.
Furthermore, while Cognizant’s medium-term financial targets appear achievable, with expectations to be among the top performers in its peer group by 2027, the anticipated growth rate is still slightly below the peer average for 2026. The company’s capital allocation strategy, which includes significant share buybacks and acquisitions, also raised some questions about the balance between these investments. Overall, these factors contribute to the decision to maintain a Hold rating, reflecting both the potential and the uncertainties in Cognizant’s future performance.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $80.00 price target.
CTSH’s price has also changed slightly for the past six months – from $75.530 to $78.820, which is a 4.36% increase.