Cognizant downgraded to Underperform from Peer Perform at Wolfe Research

Wolfe Research analyst Darrin Peller downgraded Cognizant to Underperform from Peer Perform with a $49 price target. The analyst also downgraded the IT Services sector to Market Underweight from Market Weight. In the backdrop of higher interest rates and an impending recession, "our criteria for recommending names has increased considerably," Peller tells investors in a research note. The analyst continues to approach his coverage as a barbell, with select picks across growth, core/GARP, and value. Street estimates still have to come down a bit more, growth stocks will likely continue facing headwinds until we have a clearer view of peak Fed rate expectations, and/or we see a greater focus on profitability, writes Peller.