Needham & Company Cuts Price Target on Cognizant (CTSH) to $65 Following 3Q

November 7, 2016 2:13 PM EST
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Price: $56.15 -1.23%

Rating Summary:
    21 Buy, 11 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 22 | Down: 17 | New: 13
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Needham & Company maintained a Buy rating on Cognizant Technology Solutions (NASDAQ: CTSH), and cut the price target to $65.00 (from $68.00), following the company's 3Q earnings report. Revenue rose 8.4% Y/Y to $3.45 billion, in-line with consensus. CTSH posted $0.86 in EPS, a penny above the Street.

Analyst Mayank Tandon commented, "While CTSH's 3Q results were broadly in line with the Street, management tightened the FY16 guidance range lower to reflect currency headwinds and persistent pressure on discretionary spending. CTSH also provided an update on the ongoing internal investigation related to potential improper payments that were made in relation to Indian facilities. We were encouraged to hear the ongoing investigation has not had a material impact on business momentum and CTSH's win rate remains consistently high. We are fine tuning our outlook lower to reflect the industry-wide cyclical pressures, but remain confident that CTSH's competitive positioning remains strong. We maintain our BUY rating but lower our target to $65."

For an analyst ratings summary and ratings history on Cognizant Technology Solutions click here. For more ratings news on Cognizant Technology Solutions click here.

Shares of Cognizant Technology Solutions closed at $52.08 yesterday.

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