Cognizant upgraded to Buy from Neutral at Citi

Citi upgraded Cognizant to Buy from Neutral with a price target of $80, up from $72. Cognizant has made “considerable progress on multiple fronts,” the analyst tells investors in a research note. The firm says the company’s reputation with clients as well as employees has improved since the CEO and board-level changes in early 2023, which is leading investors to “show steady, incremental interest in this idiosyncratic, self-help story.” Citi considers year-to-date bookings strength and improved client and employee retention as early evidence that Cognizant can keep pace with its main comps into a recovery, saying this should help the stock deliver an attractive return.