Cognizant (CTSH) has inked a business engagement deal with Cabot Corporation (CBT), a global specialty chemicals and performance materials firm, wherein Cognizant will aid in Cabot’s digital transformation journey.
Cognizant is a global technology company that offers business consulting, information technology, and outsourcing services to clients worldwide. (See CTSH stock charts on TipRanks)
Per the terms of the deal, Cognizant will offer application development and maintenance, as well as infrastructure and operations services for Cabot’s digital operations. Cognizant’s services will lead to various benefits like automation, cloud, DevOps, artificial intelligence (AI), and self-service functions.
As a result, Cabot will achieve enhanced execution of its strategic growth initiatives, as well as create an improved digital experience for its customers and employees.
Saurabh Mehta, Global Head of Manufacturing, Logistics, Energy, and Utilities at Cognizant, commented, “Cabot understands that investing and refocusing resources toward digital initiatives are crucial to reinforcing the company’s industry leadership and position as an innovative partner to its global business lines.”
He further added, “Cognizant is proud to support Cabot’s multi-year transformation journey, helping drive digital innovation with its customers and generating strong cash flows through efficiency and optimization.”
Morgan Stanley analyst James Faucette recently decreased the price target on Cognizant Technology Solutions to $90 (14.3% upside potential) from $93 and maintained a Buy rating.
Overall, the stock has a Moderate Buy consensus rating based on 6 Buys, 3 Holds, and 2 Sells. The average Cognizant price target of $83.55 implies 6.1% upside potential from current levels.
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