BMO Capital Markets Lowers DXC Technology (NYSE:DXC) Price Target to $10.00

Key Points

• BMO Capital Markets cut its price target on DXC Technology from $17 to $10 and kept a market perform rating, implying modest upside from the current share price.
• Other analysts remain cautious on DXC, with several firms lowering targets or assigning hold/sell ratings; MarketBeat shows an average rating of Reduce and an average target price of $13.50.
• DXC reported Q1 earnings of $0.77 per share, topping estimates, but revenue of $3.13 billion missed expectations and fell 1.2% year over year.

DXC Technology (NYSE:DXC - Get Free Report) had its target price cut by stock analysts at BMO Capital Markets from $17.00 to $10.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has a "market perform" rating on the stock. BMO Capital Markets' price target indicates a potential upside of 5.88% from the stock's current price.

A number of other research firms have also recently weighed in on DXC. TD Cowen lowered their price objective on shares of DXC Technology from $15.00 to $14.00 and set a "hold" rating for the company in a research report on Monday, April 6th. Wolfe Research set a $13.00 target price on shares of DXC Technology and gave the stock an "underperform" rating in a report on Friday, January 30th. Stifel Nicolaus set a $12.00 target price on shares of DXC Technology in a report on Friday. Weiss Ratings reiterated a "sell (d+)" rating on shares of DXC Technology in a report on Wednesday, April 8th. Finally, Zacks Research lowered shares of DXC Technology from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 3rd. Eight research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $13.50.

DXC Technology Stock Performance

NYSE:DXC opened at $9.45 on Monday. The company has a debt-to-equity ratio of 0.94, a quick ratio of 1.35 and a current ratio of 1.36. The stock has a market capitalization of $1.60 billion, a P/E ratio of 157.42 and a beta of 0.85. The company has a 50 day moving average price of $12.24 and a 200 day moving average price of $13.41. DXC Technology has a fifty-two week low of $8.40 and a fifty-two week high of $17.26.

DXC Technology (NYSE:DXC - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.77 earnings per share for the quarter, topping analysts' consensus estimates of $0.70 by $0.07. The firm had revenue of $3.13 billion during the quarter, compared to analysts' expectations of $3.17 billion. DXC Technology had a net margin of 0.14% and a return on equity of 17.24%. The firm's quarterly revenue was down 1.2% on a year-over-year basis. During the same quarter last year, the company posted $0.84 EPS. DXC Technology has set its Q1 2027 guidance at 0.400-0.400 EPS and its FY 2027 guidance at 2.400-2.900 EPS. Equities research analysts forecast that DXC Technology will post 2.65 EPS for the current year.

Institutional Investors Weigh In On DXC Technology

A number of hedge funds have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC lifted its holdings in DXC Technology by 38.2% during the 3rd quarter. Smartleaf Asset Management LLC now owns 2,814 shares of the company's stock worth $38,000 after buying an additional 778 shares in the last quarter. CoreCap Advisors LLC raised its holdings in shares of DXC Technology by 16.3% in the 3rd quarter. CoreCap Advisors LLC now owns 6,271 shares of the company's stock valued at $85,000 after purchasing an additional 879 shares in the last quarter. Arizona State Retirement System raised its holdings in shares of DXC Technology by 1.8% in the 3rd quarter. Arizona State Retirement System now owns 53,799 shares of the company's stock valued at $733,000 after purchasing an additional 961 shares in the last quarter. Lido Advisors LLC raised its holdings in shares of DXC Technology by 6.1% in the 4th quarter. Lido Advisors LLC now owns 17,383 shares of the company's stock valued at $241,000 after purchasing an additional 1,003 shares in the last quarter. Finally, Fifth Third Bancorp raised its holdings in shares of DXC Technology by 116.0% in the 4th quarter. Fifth Third Bancorp now owns 2,102 shares of the company's stock valued at $31,000 after purchasing an additional 1,129 shares in the last quarter. 96.20% of the stock is currently owned by institutional investors and hedge funds.

DXC Technology Company Profile

DXC Technology, headquartered in Tysons Corner, Virginia, is a global leader in IT services and solutions. The company was formed in 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise, combining decades of experience in consulting, systems integration and managed services. Since its inception, DXC has focused on helping clients modernize IT environments and drive digital transformation across their organizations.

DXC Technology's core service offerings encompass cloud and platform services, applications and analytics, security, and workplace and mobility solutions.

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