Mizuho believes Cognizant Technology’s acquisition of Belcan is a positive for three reasons. The deal helps Cognizant enter into higher skilled areas, boosts its exposure to growing markets like aerospace and defense, and enhances its growth as Belcan’s services categories are expected to grow faster than the company’s, the analyst tells investors in a research note. The firm says Cognizant’s trends coming in at the upper half of guidance “is yet another positive.” It keeps a Neutral rating on the shares with an $82 price target.
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