Analyst James Faucette of Morgan Stanley maintained a Hold rating on DXC Technology, retaining the price target of $15.00.
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James Faucette has given his Hold rating due to a combination of factors related to DXC Technology’s involvement in the banking sector. The recent merger between Fifth Third Bancorp and Comerica, valued at $10.9 billion, highlights the potential for consolidation in core banking software. Although Comerica currently uses DXC’s Hogan core system, the overall financial impact on DXC is expected to be limited even if Comerica transitions to Fifth Third’s incumbent system.
Faucette notes that large banks often use multiple core systems, which reduces their reliance on a single vendor like DXC. Even in a scenario where Comerica decommissions DXC’s Hogan platform, the revenue impact on DXC would be minimal, representing only a small fraction of their projected FY26 revenue. Additionally, the continued use of Hogan by four of the six largest U.S. banks suggests that DXC’s position in the market remains relatively stable, supporting the Hold rating.
In another report released on September 24, TR | OpenAI – 4o also downgraded the stock to a Hold with a $14.50 price target.
Based on the recent corporate insider activity of 45 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 DXC in relation to earlier this year.