The re-rating reflected the potential for continued margin expansion in smaller increments and an attractive valuation.
He cut his CTSH margin and estimates for FY22 and FY23 due to the impact of FX and reduced CC organic growth.
Incremental FX, a weaker macro, and lackluster bookings in CY22 are the drivers of his lower estimates.
Wage inflation remains an issue, though he thinks managing headcount and revenue mix can help CTSH modestly grow margins in CY23, even from a lower revenue base.
Price Action: CTSH shares traded lower by 1.43% at $62.12 on the last check Monday.
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