DXC Technology (DXC): The firm downgraded DXC's shares to Sell from Neutral with a price target of $21. The analysts see added uncertainty post December 2023 quarter expectations and go-forward strategy following the recent and abrupt CEO exit announcement. Only the Free cash flow, or FCF, portion of the FY24 outlook was confirmed (also affirmed prior fiscal third quarter '24 outlook), which leads to downside concerns around other portions of the FY24 outlook along with the potential drivers of the CEO exit decision.
The analysts think that the intermediate-to-long-term risk to the story here cannot be ignored.
I smell LAYOFFS!