UPDATE: HSBC Upgrades Cognizant Technology Solutions (CTSH) to Buy
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HSBC analyst Yogesh Aggarwal upgraded Cognizant Technology Solutions (NASDAQ: CTSH) from Hold to Buy with a price target of $90.00 (from $80.00).
The analyst comments "Growth has slowed meaningfully, the entire top management team has been replaced in the past two years, attrition is high, and margins have been under pressure. Arguably, most of this has already been reflected in the current valuation. We see upside risk on growth guidance. The company has guided to FY21 growth of 5.5-7.5% (in cc terms) and we see 9% growth in FY21e (organic cc growth of c6%). More importantly, most of the management team is in place now, more than 500 senior sales executives have been hired, problems in at least 6-7 of the top-10 customers are over, and industry tailwinds remain strong."
Shares of Cognizant Technology Solutions closed at $67.75 yesterday.
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