Cognizant Technology Solutions shares fell sharply after Citigroup reduced its price target to $45. The downgrade underscores growing concerns regarding the company's long-term growth prospects.
The selloff follows Cognizant's recent removal from the Nasdaq-100 index. This exclusion has heightened existing market anxiety.
Investors are also monitoring the threat generative AI poses to traditional IT outsourcing business models. Citigroup's move signals a lack of confidence in the stock's near-term potential.