Ambit Upgrades Cognizant (CTSH) Stock to Buy, Citing Improving Growth and Operational Gains

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) ranks among the most undervalued NASDAQ stocks to buy now. On September 16, Ambit Capital reduced its price target for Cognizant Technology Solutions Corporation (NASDAQ:CTSH) from $84 to $82 while upgrading the company from Sell to Buy. After losing in important sectors like BFSI and Healthcare, which account for 60% of its revenue, Ambit states that the company’s performance is now comparable to or better than its tier-1 peers, which also highlighted Cognizant’s improving growth trajectory.

A number of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) operational gains were highlighted by Ambit Capital, including attrition rates that are now on par with peers, increased offshoring, decreased client attrition, improved capabilities in SaaS and ER&D, and improved operational efficiencies.

Ambit Capital hinted at Cognizant Technology Solutions Corporation (NASDAQ:CTSH) having further room to invest as long as SG&A and outsourcing are allowed.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a multinational IT services company that helps businesses modernize via digital technology.

While we acknowledge the potential of CTSH to grow, 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 this cheapest AI stock.

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