-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our price target by $14 to $77, 13.5x our 2026 EPS view, below CTSH's three-year average (~25x) as bookings momentum is more than offset by macroeconomic uncertainty and rising concerns about AI competition. We lift our 2026 EPS estimate by $0.06 to $5.72 and raise 2027's by $0.05 to $6.18. CTSH's 2026 organic sales growth forecast is sitting at ~3.8%, which we think will act as a growth floor for multiple years as large deals steadily ramp in the coming quarters. Bookings performance continues to strengthen, accelerating to 11% growth in Q1 on a TTM basis, with large deal TCV up 70% Y/Y. We think both results signal CTSH's above-market ability to capture demand in a tough environment. Still, we note it has been increasingly difficult to shake the bearish narrative of AI as an existential threat, and we reduce our multiple accordingly, as Q1 results offered mixed answers to this question, with bookings strength offset by a maintained sales guidance (5.25%) despite help from recent acquisitions.