Analyst Bryan Bergin from TD Cowen maintained a Hold rating on DXC Technology and keeping the price target at $15.00.
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Bryan Bergin has given his Hold rating due to a combination of factors influencing DXC Technology’s current and future performance. The company’s recent quarterly revenue fell slightly short of expectations, primarily due to ongoing challenges in its Customer Experience Solutions (CES) segment. Despite this, DXC demonstrated solid profit margins and raised its free cash flow guidance for the fiscal year 2026, indicating some positive turnaround progress.
However, the company’s bookings were lighter than anticipated, particularly in the CES segment, which introduces uncertainty regarding its growth trajectory. While management remains optimistic about surpassing booking targets in the latter half of fiscal 2026, the weaker second-quarter bookings could affect investor confidence. On a positive note, DXC has a strong pipeline of large deals that could bolster investor sentiment if successfully converted. The firm’s free cash flow strength also provides flexibility for debt reduction and share repurchases, potentially supporting the stock price amidst broader market pressures.
According to TipRanks, Bergin is an analyst with an average return of -0.7% and a 43.65% success rate. Bergin covers the Technology sector, focusing on stocks such as Accenture, Block, and Grid Dynamics Holdings.