DXC Technology (NYSE:DXC) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised DXC Technology’s price target from $9 to $12 but maintained an “equal weight” rating, implying roughly 19% downside from the previous close.
• Analyst sentiment remains cautious: DXC has a consensus “Reduce” rating, with seven Hold ratings and three Sell ratings and an average price target of $12.06.
• DXC exceeded quarterly earnings and revenue estimates, reporting $0.67 in EPS and $3.03 billion in revenue, though revenue declined 4.1% year over year.

DXC Technology (NYSE:DXC - Get Free Report) had its target price hoisted by equities researchers at Morgan Stanley from $9.00 to $12.00 in a research report issued on Monday, Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's price target points to a potential downside of 19.04% from the stock's previous close.

A number of other brokerages have also recently weighed in on DXC. Stifel Nicolaus dropped their price target on DXC Technology from $12.00 to $10.50 and set a "hold" rating on the stock in a research note on Friday, July 31st. Weiss Ratings raised DXC Technology from a "sell (d)" rating to a "sell (d+)" rating in a research note on Tuesday, October 6th. Zacks Research raised DXC Technology from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. JPMorgan Chase & Co. boosted their target price on shares of DXC Technology from $12.00 to $13.00 and gave the stock an "underweight" rating in a research report on Friday. Finally, Royal Bank Of Canada dropped their target price on shares of DXC Technology from $16.00 to $14.00 and set a "sector perform" rating on the stock in a research report on Friday, July 31st. Seven analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, DXC Technology presently has a consensus rating of "Reduce" and a consensus price target of $12.06.

DXC Technology Price Performance

NYSE:DXC traded down $0.16 during trading hours on Monday, reaching $14.82. 2,397,963 shares of the company's stock were exchanged, compared to its average volume of 3,850,181. The company has a quick ratio of 1.41, a current ratio of 1.15 and a debt-to-equity ratio of 0.64. The company has a market capitalization of $2.37 billion, a P/E ratio of 22.85 and a beta of 0.79. DXC Technology has a 12 month low of $7.90 and a 12 month high of $16.38. The business's 50-day simple moving average is $12.28 and its two-hundred day simple moving average is $11.59.

DXC Technology (NYSE:DXC - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The company reported $0.67 EPS for the quarter, beating analysts' consensus estimates of $0.55 by $0.12. The company had revenue of $3.03 billion during the quarter, compared to the consensus estimate of $2.98 billion. DXC Technology had a return on equity of 14.35% and a net margin of 0.91%. The company's quarterly revenue was down 4.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.84 EPS. Sell-side analysts expect that DXC Technology will post 2.47 EPS for the current fiscal year.

Institutional Investors Weigh In On DXC Technology

Several institutional investors and hedge funds have recently made changes to their positions in DXC. Villanova Investment Management Co lifted its position in DXC Technology by 7.5% during the 3rd quarter. Villanova Investment Management Co now owns 138,327 shares of the company's stock worth $1,498,000 after buying an additional 9,640 shares in the last quarter. Covestor Ltd increased its holdings in shares of DXC Technology by 32.6% in the third quarter. Covestor Ltd now owns 8,756 shares of the company's stock valued at $95,000 after purchasing an additional 2,153 shares in the last quarter. Vise Technologies Inc. bought a new position in DXC Technology in the 3rd quarter worth approximately $156,000. Cidel Asset Management Inc. lifted its holdings in DXC Technology by 9.1% during the 3rd quarter. Cidel Asset Management Inc. now owns 15,516 shares of the company's stock worth $168,000 after buying an additional 1,299 shares in the last quarter. Finally, Moss Adams Wealth Advisors LLC bought a new position in DXC Technology in the 3rd quarter valued at $231,000. Institutional investors and hedge funds own 96.20% of the company's stock.

About DXC Technology

DXC Technology NYSE: DXC is a global information technology services and solutions company that helps organizations modernize and manage their technology environments. Its services include consulting, application development and management, cloud migration and operations, cybersecurity, data and analytics, enterprise technology management, and workplace and end-user services.

The company serves businesses and government organizations across a range of industries, including financial services, healthcare, insurance, manufacturing, aerospace and defense, automotive, retail, and the public sector.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.