Analysts Offer Mixed Views on Cognizant (CTSH) as AI Strategy Gains Momentum

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is one of the best affordable AI stocks to buy now. On December 12, UBS analyst Kevin McVeigh reaffirmed a Hold rating on Cognizant Technology Solutions Corporation (NASDAQ:CTSH) with a price target of $85, while Citi’s Bryan Keane also maintained a Hold.

Analysts Offer Mixed Views on Cognizant (CTSH) as AI Strategy Gains Momentum

On December 10, the company inked a five-year strategic collaboration with German trading company BayWa. The agreement focuses on digital transformation and IT service operations. Cognizant is to manage BayWa’s core IT services, encompassing  IT infrastructure, application management, and workplace services. The ultimate goal is to scale BayWa’s IT landscape by introducing AI and automation technologies.

“BayWa chose Cognizant because the service provider responds very flexibly to the needs of the diversified group and offers digital innovation and sustainable IT solutions,” said Thomas Dibbern, CIO at BayWa.

The BayWa collaboration comes on the heels of the company hitting its target of training one million individuals by 2026 and now plans to upskill to two million people by 2030. The initiative focuses on areas of enhanced learning and development resources.

“The expansion of our Synapse commitment marks a significant step toward building a more future-ready workforce,” said Ravi Kumar S., Chief Executive Officer at Cognizant. “We are proud to have surpassed our initial goal ahead of schedule.”

Meanwhile, analysts at William Blair upgraded Cognizant Technology Solutions to a Market Perform and Outperform on November 21. The upgrade is in response to the company’s accelerated AI-focused strategy and improved operational execution. According to the research firm, the company has entered a new phase of growth and profitability, driven by AI initiatives, better execution, and stronger demand across key verticals.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) uses AI to help clients modernize their businesses by integrating AI into their technology, processes, and experiences to drive efficiency, growth, and innovation. Their AI strategy centers on a platform called Cognizant Neuro AI, which offers a full range of tools and services for responsible enterprise-wide AI adoption.

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.