Cognizant seeing signs of stabilization, says Goldman Sachs

Goldman Sachs analyst James Schneider keeps a Neutral rating and $76 price target on Cognizant following the company’s presentation at the Communacopia & Technology conference. The firm states that while the company is expecting the weaker discretionary demand environment to persist through 2024, it is seeing signs of stabilization in overall demand. Goldman Sachs adds that despite near-term gross margin pressure, Cognizant still sees room to drive operating expenditure synergies through NextGen to drive operating margin expansion.