Ambit Capital Starts Cognizant Technology Solutions (CTSH) at Sell (4)

Ambit Capital analyst Ashwin Mehta initiates coverage on Cognizant Technology Solutions (NASDAQ: CTSH) with a Sell (4) rating and a price target of $65.00.

Thje analyst comments "Our caution is driven by weak outlook for BFSI and Healthcare (63% of revenue) and likely disruptions in CMT from project completions and content business exit. Strategically, changes proposed by new management are prudent but too much is changing in a not so benign operating environment; cost cuts, headcount cuts, business divestment, sales hiring and positioning improvement are all being planned at the same time. We believe both growth and margin
improvement may not play out and disappointments are likely in the interim."

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 $63.22 yesterday.

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