Ambit Capital Upgrades Cognizant Technology Solutions Corporation (CTSH) on Improving Fundamentals

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is one of the cheap AI stocks to buy right now. On September 19, Ambit Capital upgraded the stock to a “Buy” from a “Sell” and lowered the price target to $82 from $84.

The adjustment is in response to the company’s improving growth trajectory. According to the research firm, its performance is comparable to or better than that of its tier 1 peers. For starters, its attrition rates are almost similar to those of its peers, amid enhanced operational efficiencies. Additionally, Cognizant Technology Solutions has seen increased offshoring, reduced client churn, and enhanced capabilities in its software-as-a-service operations.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) helps businesses leverage AI and data to enhance decision-making, automate processes, and optimize their operations. It provides a comprehensive suite of services, including Generative AI, data management, and the deployment of AI-driven platforms, such as their proprietary Neuro AI Decisioning platform.

While we acknowledge the potential of CTSH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.