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DXC Technology: JP Morgan downgrades to Underweight, PT to $14.
ByAinvest
Wednesday, Aug 20, 2025 11:21 am ET1min read
DXC Technology: JP Morgan downgrades to Underweight, PT to $14.
JP Morgan has downgraded DXC Technology to 'Underweight' and reduced its price target to $14, according to a recent report [1]. The downgrade comes on the heels of a series of analyst adjustments and a recent report highlighting DXC's leadership in custom application development services.The latest report from Everest Group, which named DXC a Leader in its Custom Application Development Services PEAK Matrix® Assessment 2025, underscores DXC's strengths in leveraging GenAI platforms and its ability to accelerate software development [2]. The report highlights DXC's efficiency, productivity, and talent recruitment, as well as its commitment to high delivery standards.
Despite the recent recognition, DXC has faced several price target reductions from various analysts. RBC, Morgan Stanley, and other firms have cut their price targets on DXC Technology, reflecting a general market sentiment that the company's stock may not perform as expected [1].
The latest downgrade from JP Morgan is a significant development for DXC Technology investors. The Underweight rating suggests that the firm believes the stock is likely to underperform the broader market. The price target of $14 is also a notable reduction, indicating a more conservative outlook on the company's future performance.
The financial health of DXC Technology is further complicated by recent earnings reports. While the company reported an earnings per share (EPS) of $0.68 for the last quarter, exceeding analysts' expectations, its revenue dropped 2.4% year-over-year [3]. This decline in revenue has likely contributed to the analyst downgrades and price target reductions.
Investors should closely monitor DXC Technology's future earnings reports and analyst adjustments to gauge the impact of the latest downgrade. The company's ability to maintain its leadership position in custom application development services and improve its financial performance will be crucial in reversing the recent downward trend.
References:
[1] https://www.marketscreener.com/quote/stock/DXC-TECHNOLOGY-COMPANY-34481067/consensus/
[2] https://www.nasdaq.com/press-release/dxc-named-leader-everest-groups-custom-application-development-services-peak-matrixr
[3] https://www.marketbeat.com/instant-alerts/filing-public-sector-pension-investment-board-increases-stake-in-dxc-technology-company-nysedxc-2025-08-14/
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