Cognizant is trading 6.2% down at $41.42 following a price-target cut from Citigroup and continued selling pressure from its removal from the Nasdaq-100 index.
- Citigroup lowered its price target to $45, while index-linked funds continue to divest following the stock's recent exit from the Nasdaq-100.
- The stock is being dragged lower by a broader sell-off in software and IT services amid concerns over AI-driven spending shifts.
- Investors are increasingly cautious regarding the structural outlook for legacy IT services providers as the industry faces technological disruption.