Cognizant Technology Solutions Corp (NASDAQ:CTSH) announced the expansion of its operations in Hong Kong with the opening of a new office.
Cognizant’s expanded presence in Hong Kong will enhance its existing operations in the Greater China region and enable Cognizant’s global, regional and local clients to leverage the technical and business capabilities available in the region, while delivering deep local insights and time zone advantages to the company’s growing roster of customers in Asia Pacific.
Cognizant currently employs more than 300 professionals in Hong Kong, delivering a broad range of services—across digital business, operations, and systems and technology—to more than 30 leading organisations in industry sectors such as financial services, insurance, retail, consumer goods, energy, utilities, and travel and hospitality.
“We are pleased that Cognizant has established a new office in Hong Kong, underscoring its long-term commitment to the region,” said Arthur Wong, Chief Information Officer at China Construction Bank (Asia) Corporation Limited [CCB (Asia)], a leading provider of commercial, corporate, consumer and private banking services. “CCB (Asia) has been using Cognizant’s high-quality financial services and technology expertise for years to manage and operate essential business processes more efficiently, lower operating costs through automation, enhance risk management, and deliver better business outcomes. Technology is key to realizing our vision of innovative and smart banking in today’s digital era. In Cognizant, we have a partner who can help us unlock the full power of our technology environment and create competitive advantage through process and technology excellence.”
“We congratulate Cognizant on the inauguration of its new office in Hong Kong,” said Gary Ma, Chief Information Officer at BOC International Holdings. “Over the past few years, Cognizant has been providing us with a range of technology services. We look forward to a continuing and collaborative partnership.”
“We continue to steadily grow our presence and investment in Hong Kong,” said Jayajyoti Sengupta, Asia Pacific Head at Cognizant. “Hong Kong’s booming information and communication technology sector is among the world’s most advanced. That, combined with Hong Kong’s specialist business and technology talent, makes the city a great location for us to deliver mission-critical transformative services to our clients in Asia Pacific and elsewhere, helping them navigate the shift to the digital era and enabling them to build stronger, more agile and innovative businesses. Our expansion in Hong Kong underscores our confidence in the ability of the city’s talent pool to help our clients win in today’s technology- and data-intensive world.”
Cognizant runs an active graduate recruitment programme in Hong Kong to hire entry-level technical and management talent from premier institutions and has been hiring graduates from institutions such as Hong Kong University, Chinese University, and City University. As part of its commitment to building talent for the future, Cognizant provides technical and soft skills training to entry-level hires in line with global benchmarks and deploys them to technology and consulting projects upon the successful completion of the training.
Shares of Cognizant Technology are currently trading at $52.15, down $0.30 or -0.57. CTSH has a 1-year high of $63.23 and a 1-year low of $45.44. The stock’s 50-day moving average is $56.31 and its 200-day moving average is $55.19.
On the ratings front, CTSH has been the subject of a number of recent research reports. In a report issued on January 31, Morgan Stanley analyst Brian Essex downgraded CTSH to Hold, with a price target of $59, which represents a potential upside of 12% from where the stock is currently trading. Separately, on January 25, Pacific Crest’s Arvind Ramnani reiterated a Buy rating on the stock and has a price target of $65.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brian Essex and Arvind Ramnani have a yearly average return of 5.3% and a loss of 6.6% respectively. Essex has a success rate of 50% and is ranked #1531 out of 4373 analysts, while Ramnani has a success rate of 25% and is ranked #3663.
Sentiment on the street is mostly bullish on CTSH stock. Out of 14 analysts who cover the stock, 9 suggest a Buy rating , 4 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $64.60, which implies an upside of 23% from current levels.
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, Manufacturing, Retail and Logistics, and Other. The Financial Services segment involves in customers providing banking/transaction processing, capital markets, and insurance services. The Healthcare segment offers healthcare providers and payers as well as life sciences customers. The Manufacturing, Retail and Logistics segment comprises of manufacturers, retailers, and customers providing logistics services. The Other segment includes communications, information, media and entertainment, and high technology.