NEW YORK (TheStreet) -- Shares of Cognizant Technology Solutions Corp. (CTSH) are declining, down by 1.17% to $53.02 in early market trading Tuesday, after the IT services and consulting company had its rating cut to "neutral" from "buy" by analysts at UBS this morning.
Analysts at the wealth management firm cited a more balanced risk/reward ratio following the company's recent rally in shares.
UBS maintained its $57 price target on shares of Cognizant.
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Teaneck, NJ-based Cognizant provides custom information technology, consulting and business process outsourcing services, operating in four segments including financial services, healthcare, manufacturing, and retail.
Separately, TheStreet Ratings team rates COGNIZANT TECH SOLUTIONS as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate COGNIZANT TECH SOLUTIONS (CTSH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: