Cognizant acquisition expands digital engineering, says Deutsche Bank

Deutsche Bank keeps a Hold rating on Cognizant with a $70 price target after the company signed a definitive agreement to acquire Belcan for $1.3B. The acquisition will materially expand Cognizant’s digital engineering capabilities while diversifying its exposure to the “fast-growing” aerospace and defense sector, the analyst tells investors in a research note. The firm believes Belcan should be a tailwind to Cognizant’s sales growth profile while being accretive to fiscal 2026 earnings. However, given the “weak” IT spending environment, Deutsche wants to see how the acquisition folds into Cognizant and will monitor the synergies.