Ambit Capital Upgrades Cognizant Technology Solutions Corporation (CTSH) on Improving Fundamentals

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is one of the cheap AI stocks to buy right now. On September 19, Ambit Capital upgraded the stock to a “Buy” from a “Sell” and lowered the price target to $82 from $84.

Ambit Capital Upgrades Cognizant Technology Solutions Corporation (CTSH) on Improving Fundamentals

The adjustment is in response to the company’s improving growth trajectory. According to the research firm, its performance is comparable to or better than that of its tier 1 peers. For starters, its attrition rates are almost similar to those of its peers, amid enhanced operational efficiencies. Additionally, Cognizant Technology Solutions has seen increased offshoring, reduced client churn, and enhanced capabilities in its software-as-a-service operations.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) helps businesses leverage AI and data to enhance decision-making, automate processes, and optimize their operations. It provides a comprehensive suite of services, including Generative AI, data management, and the deployment of AI-driven platforms, such as their proprietary Neuro AI Decisioning platform.

While we acknowledge the potential of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CTSH and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.