Benzinga | Sep 14, 2021 09:03AM EDT

BofA Analyst Upgrades DXC Tech, Double Downgrades CGI - Read Why

* BofA analyst Jason Kupferberg upgraded DXC Technology Co (NYSE:DXC) to Buy from Neutral with a $45 price target, implying a 25.1% upside.

* CGI Inc (NYSE:GIB) now trades at a 30% premium to its historical average multiple relative multiple to DXC above the 10-year average. Kupferberg, therefore, switched his preference to DXC, which he believes is "getting close to reaching break-even organic revenue growth."

* Kupferberg double downgraded CGI to Underperform from Buy with a price target of $95, up from $93, indicating a 4.3% upside.

* Price Action: DXC shares traded higher by 1.72% at $36.6 in the premarket session on the last check Tuesday.