DXC Technology downgraded to Sell from Neutral at Citi

Citi analyst Ashwin Shirvaikar downgraded DXC Technology to Sell from Neutral with a price target of $21, down from $24. The analyst cites uncertainty on the company’s strategy and expectations following the “abrupt” CEO departure in December 2023. Only the free cash flow portion of DXC’s fiscal 2024 outlook was confirmed, which leads to downside concerns around other portions of the outlook along with the potential drivers of the CEO exit decision, the analyst tells investors in a research note. The firm believes the intermediate-to-long-term risk to the story “cannot be ignored.”