JPMorgan analyst Tien-tsin Huang upgraded DXC Technology to Neutral from Underweight with a price target of $33, up from $31. The company’s recurring revenue should prove to be less tied to clients discretionary spending and more defensive in a weakening macro cycle, Huang tells investors in a research note. Further, the analyst believes Street estimates for fiscal 2024 margins "don’t present a high bar" and should benefit from DXC’s cost cutting actions and easier supply environment.
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