Needham analyst Mayank Tandon issued a double-downgrade on Cognizant to Hold from Strong Buy after its "disappointing" Q1 earnings and revenue miss along with a cut to its FY19 forecast, driven by "incremental softness" in the healthcare and financial services verticals. The analyst believes that the spending cuts on legacy services by certain clients was "exacerbated by consolidation activity within healthcare" and expects the "incremental softness" to persist into FY20. After yesterday's 7.8% stock price decline however, Tandon expects further downside in shares to be limited.