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IT Services Provider DXC Technology Stock Slips on J.P. Morgan Downgrade

Shares of information technology services provider DXC Technology slip Tuesday after a downgrade to underweight by J.P. Morgan.

Shares of DXC Technology  (DXC) - Get DXC Technology Co. Report fell over 8% Tuesday after J.P. Morgan downgraded the stock to underweight from neutral, adding that it offers the lowest upside potential.

Shares of the Tyson, Va., company fell 9.2% to $37.89 at last check.

The technology consulting, outsourcing and support services provider's “modest” net free cash flow over the medium term could limit investments, analysts led by Tien-tsin Huang said in a note.

DXC Technology was the biggest loser on the S&P 500 Index Tuesday at the trading open.

J.P. Morgan raised its price target on DXC stock to $45 a share from $42 a share.

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DXC Technology trades at 11 times its estimated earnings per
share for the coming year, according to Bloomberg News. 

It trades at 13 times trailing EPS. The company is priced at 1.9 times book value.

Analysts have six buy, five hold, and one sell recommendations on the stock, according to data compiled by Bloomberg.

DXC Technology has an annual shareholder meeting scheduled for Tuesday.