Cognizant downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst Tien-tsin Huang downgraded Cognizant Technology Solutions to Underweight from Neutral with a price target of $62, up from $61. The analyst believes potential macro weakness and the slowing growth environment could impede the company’s turnaround plans "as other vendors will become hungrier for growth over the near term." While potentially easier supply should help, Cognizant’s attrition rates could stay at above industry average rates, Huang tells investors in a research note. The analyst’s 2023 estimates imply low single constant currency organic growth, which is below Street estimates. He believes "weak absolute growth rates" could drive near term underperformance of the shares.