On Friday, Susquehanna made a significant adjustment to the price target on shares of DXC Technology (NYSE: NYSE:DXC), bringing it down to $15 from the previous target of $22. The firm has decided to maintain a neutral stance on the stock despite this change.
The reduction in the price target comes after DXC Technology's fourth fiscal quarter results, which were reported to be generally in line with or exceeding expectations. Still, the company's new CEO has revised the guidance to figures substantially lower than the long-term targets established by the previous management team.
Susquehanna's analyst noted that while the revised guidance is a step down, the decision to prioritize margins in the company's mature Global Infrastructure Services (GIS) segment is seen as a positive move. Moreover, the intention to invest in the distribution of segments with more promising growth, such as Insurance, was also highlighted as a prudent strategy.
Despite these potentially positive strategic shifts, Susquehanna has expressed caution, indicating that the transition for DXC Technology is expected to be a gradual process. The firm is looking for better visibility into the company's future performance before altering its stance on the stock. The revised stock price target of $15 reflects the lowered estimates and the current neutral outlook on DXC Technology.
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