Needham analyst Mayank Tandon has maintained their neutral stance on CTSH stock, giving a Hold rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Mayank Tandon has given his Hold rating due to a combination of factors influencing Cognizant’s current market position. The company’s recent quarterly results surpassed expectations, driven by improved demand trends and operational efficiencies, marking its best sequential organic growth since 2022. Despite a 5% year-over-year decline in bookings for the quarter, the trailing twelve-month bookings have increased by 5%, and the pipeline remains robust. Additionally, Cognizant secured six large deals with a significant increase in annual contract value.
While these developments are promising, Tandon notes that the shares are trading at approximately 13 times the ex-cash FY26 EPS estimate, which he views as a neutral risk-reward scenario. This valuation, combined with the improved sales execution and the overall health of the IT services industry, leads to the decision to maintain a Hold rating on Cognizant’s stock.
In another report released today, Mizuho Securities also reiterated a Hold rating on the stock with a $84.00 price target.
Based on the recent corporate insider activity of 111 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CTSH in relation to earlier this year.