(Updates with the analyst's commentary.)

Wedbush upgraded Cognizant Technology Solutions (CTSH) to outperform rating from neutral and raised its price target to $70 from $56 as the firm is "starting to gain momentum for its AI [artificial intelligence] Builder strategy" and that the company's positives outweigh the negatives for H2 this year.

Cognizant is "starting to see meaningful market share gains" in productivity savings from its AI tools and business partnerships, analysts Steven Wahrhaftig and Dan Ives wrote in a Monday note.

The firm's three-vector AI strategy including "AI-led productivity," "industrializing AI" and "agentifying enterprises" is a gauge for future-proofing and is reaching "an inflection," the analysts said.

Cognizant Technology Solutions has an average rating of overweight and mean price target of $72.04, according to analysts polled by FactSet.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 53.92, Change: +0.71, Percent Change: +1.33