Cognizant price target raised to $71 from $65 at BMO Capital

BMO Capital analyst Keith Bachman raised the firm’s price target on Cognizant (CTSH) to $71 from $65 but keeps a Market Perform rating on the shares. The company’s Q4 and FY22 guidance update was reasonable given "very low expectations" but again weaker than Tata Consultancy Services and Infosys (INFY), the analyst tells investors in a research note. IT services generally face a difficult demand environment, particularly in the first half of 2023, Bachman adds, stating that the uncertainty around the macroeconomic environment and bookings growth may limit top-line growth over the next several quarters.