DXC Technology (DXC) Upgraded by Zacks Investment Research to Buy

DXC Technology (NYSE:DXC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The brokerage currently has a $109.00 target price on the stock. Zacks Investment Research‘s price objective indicates a potential upside of 11.34% from the company’s previous close.

According to Zacks, “DXC Technology reported mixed third-quarter fiscal 2018 results, where in the bottom line surpassed the Zacks Consensus Estimate while the top line missed the same. The company’s upbeat guidance for earnings makes us optimistic about its near-term performance. DXC Technology is a result of merger between CSC and Enterprise Services Division of HPE. We believe that the merger has opened new avenues of growth for the combined company. Going ahead, following the footsteps of Computer Sciences, DXC Technology may be seen making strategic acquisitions to strengthen its portfolio, which should drive growth over the long run. Additionally, the company’s traction in the cloud and partnerships with HCL, AT&T, VMware and Microsoft are expected to drive growth, going forward. The stock has outperformed the industry in the last one year. Nonetheless, rising interest expenses due to increased debt burden may dampen its profitability.”

Several other equities analysts have also commented on DXC. Deutsche Bank raised their price target on DXC Technology from $90.00 to $100.00 and gave the company a “hold” rating in a research note on Friday. BMO Capital Markets raised their price target on DXC Technology from $110.00 to $117.00 and gave the company an “outperform” rating in a research note on Friday. Morgan Stanley raised their price target on DXC Technology from $104.00 to $114.00 and gave the company an “overweight” rating in a research note on Monday, February 5th. SunTrust Banks upgraded DXC Technology from a “hold” rating to a “buy” rating in a research note on Wednesday, January 31st. Finally, Citigroup restated a “buy” rating and set a $117.00 price target (up previously from $107.00) on shares of DXC Technology in a research note on Thursday, January 18th. Four equities research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus price target of $103.33.

Shares of DXC Technology (NYSE:DXC) opened at $97.90 on Tuesday. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.99 and a quick ratio of 1.00. DXC Technology has a 52 week low of $67.76 and a 52 week high of $102.95. The firm has a market capitalization of $27,708.87, a price-to-earnings ratio of 31.99, a price-to-earnings-growth ratio of 1.19 and a beta of 1.04.

DXC Technology (NYSE:DXC) last released its earnings results on Thursday, February 8th. The company reported $2.15 earnings per share for the quarter, topping analysts’ consensus estimates of $1.99 by $0.16. DXC Technology had a return on equity of 17.97% and a net margin of 5.18%. The business had revenue of $6.19 billion for the quarter, compared to analyst estimates of $6.19 billion. The company’s revenue was up 222.7% on a year-over-year basis. sell-side analysts expect that DXC Technology will post 7.74 EPS for the current year.

A number of hedge funds have recently modified their holdings of DXC. Stuart Chaussee & Associates Inc. bought a new stake in DXC Technology during the fourth quarter valued at about $100,000. Advisory Services Network LLC bought a new stake in DXC Technology during the second quarter valued at about $101,000. Calton & Associates Inc. bought a new stake in DXC Technology during the fourth quarter valued at about $112,000. Cerebellum GP LLC bought a new stake in DXC Technology during the fourth quarter valued at about $130,000. Finally, Citizens Financial Group Inc. RI boosted its position in DXC Technology by 68.2% during the third quarter. Citizens Financial Group Inc. RI now owns 2,172 shares of the company’s stock valued at $187,000 after purchasing an additional 881 shares in the last quarter. 84.62% of the stock is currently owned by institutional investors.

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About DXC Technology

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates through two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment offers technology solutions comprising consulting, applications services, and software.

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