Shares of professional services provider Cognizant Technology (NASDAQ:CTSH) are on the rise today after the company signed a multi-year deal with Cambridge University Press and Assessment to improve operational effectiveness and maintain exam results integrity.
This renewed five-year engagement will focus on driving digital transformation and utilizing AI solutions to transition towards a product-centric approach. Further, CTSH will continue application development and support services for Cambridge.
Cognizant’s deal with Cambridge follows the company’s recent acquisition of Thirdera. Thirdera is a specialist in advisory and solutions associated with the ServiceNow platform. Importantly, Thirdera is the largest pure-play ServiceNow (NYSE:NOW) partner, and the acquisition is part of Cognizant’s push to create a $1 billion combined business with ServiceNow.
Meanwhile, Cognizant’s fourth-quarter results are coming up on February 1. Analysts expect the company to post an EPS of $1.04 on revenue of $4.76 billion for the quarter. In the comparable year-ago quarter, Cognizant’s EPS of $1.01 had missed estimates by $0.01.
What is the Target Price for CTSH?
Overall, the Street has a Hold consensus rating on Cognizant. Following a nearly 30% jump in the company’s share price over the past year, the average CTSH price target of $74.07 implies the stock may be fairly priced at current levels.
Read full Disclosure
