Cognizant upgraded to Overweight from Equal Weight at Barclays

Barclays analyst Ramsey El-Assal upgraded Cognizant (CTSH) to Overweight from Equal Weight with a price target of $95, up from $80. The analyst believes the headwinds impacting IT services growth may turn to tailwinds progressing through fiscal 2025, “leading to a thawing of investment dollars.” Cognizant has made the necessary investments to capture demand as it returns, the analyst tells investors in a research note. Barclays says interest rates are coming down, inflation is easing, generative artificial intelligence projects are shifting from proof of concept to production, and the overall demand for digital transformation work “looks to be perking up.”