Deutsche Bank analyst Bryan Keane downgraded DXC Technology to Hold from Buy with a price target of $23, down from $35. Many things had improved for the company since the firm’s previous upgrade of the shares to Buy in March 2021 – including improving margins, much stronger free cash flow generation, higher client NPS scores, and improved client morale – but that progress has “stalled and is now reversing” with bookings, organic revenue and adjusted margins all falling below the firm’s expectations, the analyst tells investors. It is not clear “when, or if, DXC will ever see positive revenue growth,” the analyst added.
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Read More on DXC:
- DXC Technology downgraded to Sector Perform from Outperform at RBC Capital
- DXC Technology downgraded to Market Perform from Outperform at BMO Capital
- DXC Technology falls 15% to $22.98 after Q1 earnings miss, guidance cut
- DXC Technology sees FY adjusted EPS $3.15-$3.40, consensus $3.86
- DXC Technology sees Q2 adjusted EPS 65c-70c, consensus 92c