Susquehanna Financial Highlights 9 IT Stocks Amid Shift Away from Semiconductors
The semiconductor index SOX has lost 37% from its June peak, while IT stocks have outperformed the S&P 500 by 22%
Susquehanna views historical dynamics as a signal rather than a forecast.
The stocks rated Positive include Globant, Cognizant, and EPAM Systems. For Globant, the broker set a target price of $70. The company is transitioning its services to an AI Pods model and outcome-based payment, yet its revenue in the second quarter remained unchanged year-over-year, and its revenue and margin forecasts were lowered. Susquehanna believes new growth dynamics are needed to justify the valuation.
For Cognizant, the target price is set at $82. The broker expects the '3 Vector' strategy, which combines productivity improvements, industrial AI adoption, and AI agents, to help the company secure projects focused on cost reduction and process optimization.
For EPAM Systems, the target price is $190. The broker sees potential for accelerated growth following the signing of three major contracts, which have improved business visibility through 2027. Meanwhile, new AI-based services already account for 13% of the company’s revenue and have grown at double-digit rates for seven consecutive quarters. Third-quarter results exceeded expectations: revenue reached $1.43 billion, adjusted margin stood at 16.7%, and earnings per share were $3.51.
