BMO Capital analyst Keith Bachman downgraded DXC Technology (DXC) to Market Perform from Outperform with a price target of $25, down from $27. The analyst thinks the tough macro environment is a “challenging time to continue a turnaround” and does not envision relief in the medium-term. Both Accenture (ACN) and Cognizant (CTSH) offer better risk/reward at this juncture than DXC, for those looking for services exposure, the analyst tells investors in a research note. While all service providers are facing growth challenges, DXC faces the added complexity of trying to improve margins and growth during a weaker economic cycle, says BMO.
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