Susquehanna downgrades Cognizant to Neutral on soft demand

Susquehanna downgraded Cognizant to Neutral from Positive with a price target of $80, down from $87. The analyst says soft demand, especially for short duration, discretionary projects, is a “pervasive, industry-level problem” in information technology services. “Entering the season where sequential growth forms the arc of the year, we do not see much building,” the analyst tells investors in a research note. The firm believes near-term consensus estimates for Cognizant look full while Q2 numbers are at risk.