TD Cowen downgraded DXC Technology to Market Perform from Outperform with a price target of $25, down from $34, post the fiscal Q1 report. The company’s “spotty” fundamental performance has persisted, leaving investors awaiting more consistent progress before gaining conviction in its turnaround, the analyst tells investors in a research note. The firm says the magnitude of the downside surprise in Q1 and reduced fiscal 2024 outlook leaves little support for its prior investment thesis, which was predicated on revenue growth inflecting into positive territory in the coming quarters, a cleaner path to improved profitability, and continued free cash flow momentum.
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