On Thursday, Noble Capital initiated coverage on Conduent (NASDAQ:CNDT) with an Outperform rating and a price target of $9.00. The coverage begins as the analyst firm sees potential in the company's ongoing businesses after its current restructuring efforts.
Conduent's stock is expected to reflect the value of its attractive operations once the company completes the rationalization and streamlining of its portfolio.
The analyst from Noble Capital based the initial recommendation on a sum of the parts analysis, which evaluates the separate components of a company to determine the aggregate value.
This approach suggests that Conduent's individual business units, when assessed independently, present a compelling value proposition that the current market price does not fully recognize.
Conduent, which operates in various business segments, has been focusing on refining its business structure to enhance efficiency and profitability.
The Outperform rating indicates that the analyst believes the stock will perform better than the average return of the stocks covered in the sector over the next 12 months.
The $9.00 price target set by Noble Capital represents the firm's expectation of where the stock will trade in the near future. This target is a key indicator for investors, as it reflects the analyst's confidence in the company's ability to grow and succeed after its portfolio adjustments.
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