Citi analyst Ashwin Shirvaikar downgraded DXC Technology to Neutral from Buy with a price target of $25, down from $32, following the “disappointing” fiscal Q1 results. The company’s business and client relationships have improved in recent years but a return to revenue growth is proving to still be difficult, the analyst tells investors in a research note. The firm says that despite the majority of DXC’s business consisting of longer-term contracts, visibility also appears to be a challenge in this uncertain macro envinrment. Citi does not view the reduced outlook as fully de-risked and sees the potential for further cuts this year.
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