In a research report released Friday, BMO Capital analyst Keith Bachman reiterated an Outperform rating on shares of Cognizant Technology Solutions Corp (NASDAQ:CTSH) with a price target of $64, after the IT company announced that Rajeev Mehta has been appointed President of the Company, replacing Gordon Coburn who resigned. The company also announced it has launched an internal investigation regarding payments associated with India (Real Estate).

Bachman noted, “We think change of management is needed at CTSH. We believe that CTSH was too slow in diversifying away from ADM. In addition, we do not believe that the market demand for lower cost IT services will support 15%-20% type of annual growth anymore. Over the next three years, we believe that growth rates will be more in the 5% to 10% annually. Therefore, we think CTSH should “act its age” and accept lower growth and consider stock buy-backs and paying a dividend. However, since current management is accustomed to rapid growth, we believe management will push to accelerate growth, potentially at the expense of margins, rather than accept current market conditions.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Keith Bachman has a yearly average return of 13.1% and a 59% success rate. Bachman has a -6% average return when recommending CTSH, and is ranked #163 out of 4200 analysts.

Out of the 19 analysts polled by TipRanks, 14 rate Cognizant stock a Buy, 4 rate the stock a Hold and 1 recommends a Sell. With a return potential of 38%, the stock’s consensus target price stands at $65.80.