Jason Kupferberg, an analyst from Bank of America Securities, maintained the Sell rating on DXC Technology (DXC – Research Report). The associated price target is $21.00.
Jason Kupferberg has assigned a Sell rating to DXC Technology, primarily due to the unforeseen change in the company’s leadership with the immediate stepping down of Mike Salvino as Chairman, CEO, and President. The abrupt nature of this change introduces an additional element of risk to DXC’s ongoing efforts to navigate a difficult turnaround, particularly given the company’s structural challenges in the highly competitive and commoditized IT Services sector. This executive shake-up amplifies the uncertainty surrounding the company’s future trajectory and strategic plans.
Furthermore, while DXC Technology has reaffirmed its third-quarter guidance and its full-year free cash flow forecast, the company has not provided any updates on its revenue or adjusted EBIT margin guidance for the full year. The lack of clarity on these important financial metrics, coupled with the initiation of a search for a new permanent CEO, raises questions about the company’s operational stability and growth prospects. Kupferberg’s Underperform rating reflects these concerns and the potential for DXC’s stock performance to lag in light of these significant headwinds.
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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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