In a report released yesterday, Keith Bachman from BMO Capital maintained a Hold rating on Cognizant, with a price target of $84.00.
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Keith Bachman has given his Hold rating due to a combination of factors that reflect both positive performance and ongoing uncertainties. Cognizant has shown solid results in the recent quarter, with notable organic revenue growth and operating margin expansion. However, the bookings were not as strong as expected, which raises questions about the sustainability of this growth.
While Cognizant is executing well amidst the challenges in the services sector, the early stages of AI development and its impact on supply and demand create uncertainty about future growth durability. Despite being the preferred name in IT services, the current market conditions and the balance between revenue improvement and margin expansion present challenges. Therefore, Bachman maintains a Market Perform rating with a target price of $84.
According to TipRanks, Bachman is a 4-star analyst with an average return of 8.3% and a 53.64% success rate. Bachman covers the Technology sector, focusing on stocks such as Microsoft, Oracle, and HubSpot.