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New Buy Rating for Cognizant (CTSH), the Technology Giant


Oppenheimer analyst Glenn Greene maintained a Buy rating on Cognizant (CTSH) today and set a price target of $80. The company’s shares closed on Tuesday at $70.02.

Greene wrote:

“At its mid-November investor event, CTSH outlined plans to transition its profitability convention (i.e. ,adjusted operating income and adjusted EPS) beginning in CY19. The new methodology no longer adjusts for stock compensation or acquisition-related charges. Accordingly, we update our estimates to reflect the new convention. Our revised FY18/FY19 adj. EPS estimates now reflect $3.97 and $4.40 (from previous non-GAAP $4.50 and $5.03), respectively, and we introduce a FY20 adj. EPS estimate of $4.81. Reiterate Outperform rating and $80 PT.”

According to TipRanks.com, Greene is a top 25 analyst with an average return of 18.1% and a 74.6% success rate. Greene covers the Technology sector, focusing on stocks such as Jack Henry & Associates, Fidelity National Info, and Total System Services.

Cognizant has an analyst consensus of Moderate Buy, with a price target consensus of $81.53, a 16.4% upside from current levels. In a report issued on November 26, Goldman Sachs also upgraded the stock to Buy with a $84 price target.

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Based on Cognizant’s latest earnings release for the quarter ending September 30, the company reported a quarterly revenue of $4.08 billion and net profit of $477 million. In comparison, last year the company earned revenue of $3.77 billion and had a net profit of $495 million.

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Cognizant Technology Solutions Corp. engages in the provision of information technology, consulting, and business process outsourcing services. It operates through the following segments: Financial Services; Healthcare; Products and Resources; and Communications, Media, and Technology. The Financial Services segment consists of banking and insurance services.