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Fly News Breaks for January 9, 2020
G, EPAM, ASGN, EXLS, DXC, CTSH
Jan 9, 2020 | 07:48 EDT
As part of his Commercial IT Services outlook for 2020, Wells Fargo analyst Ed Caso upgraded Cognizant Technology Solutions (CTSH) to Overweight from Equal Weight and downgraded both DXC Technology (DXC) and ExlService (EXLS) to Underweight from Equal Weight. The analyst looks for a positive backdrop for information technology / business process outsourcing providers in 2020 as the "massive digital transformation market gains momentum globally with contract sizes rising and pricing remaining favorable." The analyst's focus stocks for 2020 are ASGN (ASGN), Cognizant, Epam Systems (EPAM) and Genpact (G). He favors Epam given its pure-play bias to one of the hottest areas, software engineering, believes Cognizant is the best "value" opportunity, and likes Genpact for its improved positioning and "under-owned" status. Caso expects provider specific issues to be the primary differentiators to business and share price performance in 2020.
News For CTSH;DXC;EXLS;ASGN;EPAM;G From the Last 2 Days
ASGN
May 25, 2022 | 06:09 EDT
As previously reported, Credit Suisse analyst Kevin McVeigh downgraded ASGN to Underperform from Neutral with a price target of $90, down from $110. While his view on the stock hasn't changed - it is one of the highest quality companies in his staffing coverage given the company's growth in excess of already healthy end markets, low perm exposure, amid value creating acquisitions - the macro environment has become too uncertain to remain Neutral at current levels, the analyst argues. While 2022 seems achievable, 2023 is more aspirational - which could create multiple pressure - as he sits 5% below the Street.