JPMorgan Upgrades Cognizant Technology (CTSH) to Overweight, Lifts PT
On May 19, JPMorgan made a significant move by upgrading Cognizant Technology Solutions Corporation (NASDAQ:CTSH) from Neutral to Overweight and increasing the price target from $88 to $92. This upgrade was based on the company’s stellar performance in its fiscal first quarter for 2025, where it exceeded market expectations.
Cognizant reported a 7.46% year-over-year revenue growth, reaching $5.12 billion, which surpassed expectations by $52 million. Additionally, the company’s earnings per share (EPS) came in at $1.23, outperforming analysts’ estimates by $0.03.
JPMorgan highlighted that Cognizant has been narrowing the growth gap with its competitors through a focus on execution, securing large deals, and retaining employees. The company reported a 3% increase in total bookings on a 12-month trailing basis, including four significant deals, one of which was a mega deal exceeding $500 million in Total Contract Value (TCV).
The firm believes that Cognizant is well-positioned to benefit from the cost-cutting project trend and is successfully securing a share of large projects. Moreover, JPMorgan commended the company’s vertical revenue mix, further solidifying its positive outlook on Cognizant’s future prospects.
Cognizant Technology Solutions Corporation is a multinational company that offers a wide range of services, including artificial intelligence, digital engineering, consulting, application development, and systems integration, to businesses worldwide.
While Cognizant shows promise as an investment, JPMorgan suggests exploring other AI stocks with potentially higher returns and limited downside risk. For investors seeking a more promising AI stock with 100x upside potential, JPMorgan recommends checking out their report on the cheapest AI stock.
In conclusion, JPMorgan’s upgrade of Cognizant Technology Solutions Corporation reflects the company’s strong performance and strategic positioning in the market. Investors interested in the tech sector should consider exploring opportunities beyond Cognizant to maximize their investment potential.
Disclosure: None.
