Guggenheim starts DXC Technology stock, eyes management’s turnaround effort

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On Tuesday, Guggenheim initiated coverage on DXC Technology stock (NYSE: NYSE:), assigning a Neutral rating. The firm’s analysis pointed to the challenges faced by the new management team, which has taken over an organization experiencing secular declines. The report acknowledged the potential for improvement under the new leadership but noted that such turnarounds are typically gradual processes.

The firm highlighted the transitional phase of DXC Technology, emphasizing the need for time to observe the company’s execution of its strategic plans.

The analyst remarked, “DXC’s new management team inherited an organization indexed to secular declines, and while we are constructive on management and see avenues for potential improvement, turnarounds take time, driving our Neutral rating as we monitor execution.”

Guggenheim’s neutral stance reflects a wait-and-see approach, signaling to investors that while there may be potential in DXC Technology’s future, the current state of the company does not warrant a more bullish or bearish position at this time.

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