Cognizant downgraded to Neutral on ‘uncertain outlook’ at Baird

Baird analyst David Koning downgraded Cognizant Technology Solutions to Neutral from Outperform with a price target of $68, up from $66, post the Q4 results. The analyst cites the company’s "uncertain outlook" and year-to-date run in the shares for the downgrade. Cognizant’s Q4 results were in line with the preannouncement, but management provided Q1 revenue guidance 3% below the Street and no full-year 2023 guidance, the analyst tells investors in a research note. The firm says the stock’s risk/reward appears balanced given the recent rally, as estimates are coming down and there is reduced visibility given no 2023 guidance.