Cognizant initiated with a Neutral at Goldman Sachs

Goldman Sachs analyst James Schneider initiated coverage of Cognizant with a Neutral rating and $72 price target. The firm initiated the Americas IT services sector and is positive on a select group of names citing their secular and cyclical opportunities. The industry is in the midst of a cyclical correction driven by IT spending constraints from macro pressures across a range of industry verticals and a near-term shift in spending priorities toward artificial intelligence-focused capex and away from software and services, the analyst tells investors in a research note. It believes Cognizant’s strategic focus on growth will be “muted” by near-term cyclical pressures.