Cognizant initiated with a Neutral at UBS

UBS analyst Kevin McVeigh initiated coverage of Cognizant with a Neutral rating and $70 price target. The analyst launched coverage on 10 stocks in technology services software with a “selective view”. Macro uncertainty is balanced by secular shifts in customer preferences towards verticalized offerings in software, the analyst tells investors in a research not. The firm says the rate-fueled multiple compression “offers investors opportunistic entry into high-quality, mission critical software businesses” with total addressable markets growing low double-digits. UBS’s view is predicated on growing trends of specialized market entrants competing and scaling market share against horizontal incumbents.