Analyst Bryan Bergin from TD Cowen maintained a Hold rating on DXC Technology (DXC – Research Report) and increased the price target to $23.00 from $22.00.
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.
Bryan Bergin’s rating is based on a combination of factors that reflect both positive and cautious elements regarding DXC Technology’s performance and outlook. The company showed solid execution in the third quarter, with improved organic revenue performance and better-than-expected margins. DXC’s go-to-market changes have started to yield positive results, enhancing conversion and win rates, particularly in the Consulting and Engineering segments. These achievements indicate progress in DXC’s turnaround efforts.
However, there are mixed signals for the future, which justify the Hold rating. While DXC has maintained levers to grow free cash flow, there are concerns about recent expense push-outs into the fiscal year 2026. Additionally, the fourth-quarter revenue guidance is underwhelming due to weaker first-half bookings, and there is a projected decline in specific business segments. Coupled with macroeconomic uncertainties affecting discretionary work, these factors suggest that while there are positive developments, challenges remain, making a Hold rating appropriate at this time.
In another report released on January 31, Morgan Stanley also maintained a Hold rating on the stock with a $22.00 price target.