A Fresh Look at Cognizant (CTSH) Valuation Following New Ataccama Data Automation Launch

Cognizant Technology Solutions (CTSH) just partnered with Ataccama to launch ONE Bridge, an automation accelerator designed to speed up and reduce risks in enterprise data migrations. This move highlights Cognizant’s focus on addressing modern data governance and compliance needs.

See our latest analysis for Cognizant Technology Solutions.

Against the backdrop of Cognizant’s push into smarter data automation, the company’s 7.5% share price return over the past month hints at building momentum. Its total shareholder return is still down 2.7% over the past year. Over a longer period, Cognizant has steadily grown value for shareholders, with a 29.8% total return over three years.

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With shares still trading nearly 10% below the average analyst price target, and valuations reflecting both steady growth and recent automation breakthroughs, investors may be wondering if Cognizant is now undervalued or if future gains are already reflected in the current price.

Most Popular Narrative: 9.0% Undervalued

The narrative's fair value estimate is noticeably above the latest closing price, suggesting that Cognizant shares may not fully reflect their upside potential yet. This sets the stage for a closer look at the bullish drivers built into the consensus view.

Cognizant's aggressive buildout of proprietary AI and agentic capabilities, demonstrated through early client engagement momentum, a growing patent portfolio, and platform launches, signals growing differentiation in enterprise AI consulting. This is expected to expand both revenues (through capturing new spend cycles) and net margins (via premium IP pricing).

Read the complete narrative.

Want to know the secret sauce behind this premium valuation? The real story is how innovative tech bets and a major shift in recurring revenues could propel profit growth. Get the full picture and see which bold assumptions are fueling this market view.

Result: Fair Value of $84.70 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent competitive pressure and rapid changes in client technology preferences may still challenge the bullish assumptions underlying Cognizant's current valuation story.

Find out about the key risks to this Cognizant Technology Solutions narrative.

Build Your Own Cognizant Technology Solutions Narrative

If you see things differently or want to explore Cognizant’s data from your own angle, you can craft your own narrative in just minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Cognizant Technology Solutions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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