-- Cognizant Technology Solutions' (CTSH) relatively soft Q2 guidance comes amid a dynamic macroeconomic backdrop as clients remain careful about making major investments, Wedbush said in a Thursday research report.
Robust Q1 bookings indicate steady demand for the company's services, but it will take time to deliver on this backlog considering the longer durations of such major deals, analysts wrote.
The acquisition of AI-based IT managed services provider Astreya is a favorable move by the company to bolster its AI builder strategy and become a "stronger operations engine," according to the note.
Cost savings from Project Leap that involves workforce restructuring and investments in AI-enabled skills for streamlining operations will be reinvested into future growth opportunities, according to analysts.
The brokerage reiterated its neutral rating on the stock and cut its price target to $56 per share from $61.
Price: $52.50, Change: $-2.20, Percent Change: -4.02%