BMO Capital analyst Keith Bachman has maintained their neutral stance on DXC stock, giving a Hold rating today.
Keith Bachman has given his Hold rating for DXC Technology due to a combination of factors. Despite DXC Technology delivering a reasonable quarter that surpassed modest expectations, Bachman believes the company is facing significant challenges. DXC Technology’s revenue has seen a decline, though the company was able to exceed its guidance for the period. However, the company’s bookings were slightly weak, and the demand for IT services still remains a difficult hurdle to overcome for all providers in the market.
Furthermore, Bachman points out that revenue is expected to remain under pressure in the second half of the fiscal year 2024. He also mentions the challenges of simultaneous cost-cutting and growth in the services sector. Despite a new leadership and better execution potentially improving the decline trajectory, Bachman remains sceptical about the level of improvement. Overall, he sees DXC Technology struggling to reverse its revenue decline while also improving profitability in a challenging IT services environment, leading him to retain his Market Perform rating for the company’s stock.
According to TipRanks, Bachman is a 5-star analyst with an average return of 6.8% and a 57.06% success rate. Bachman covers the Technology sector, focusing on stocks such as Microsoft, Adobe, and Palo Alto Networks.
In another report released today, Stifel Nicolaus also maintained a Hold rating on the stock with a $21.00 price target.
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DXC Technology (DXC) Company Description:
DXC Technology Co. provides technology consulting, outsourcing and support services. It operates through the following segments: Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment provides technology solutions that help clients address challenges and accelerates the digital transformations that is tailored to each client’s specific objectives. The GIS segment offers to deliver predictable outcomes and measurable results, while reducing business risk and operational costs for clients. The USPS segment delivers IT services and business solutions to all levels of government in the United States. The company was founded on 19th May, 2016 and is headquartered in Tysons, VA.
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