CTSH, PAYX upgraded, RSKD, GDOT downgraded at Barclays (NASDAQ:CTSH)

Barclays analyst Ramsey El-Assal tweaked his ratings on several payment technology companies Thursday as “the payments industry sentiment is finally starting to firm up again.”

Looking ahead to 2024, the sell-side analyst upgraded Cognizant Technology Solutions (NASDAQ:CTSH) to Equal Weight from Underweight on the expectation that the company is poised to capture demand as it returns, he wrote in a note.

Management has made progress with a slew of issues that came about after the pandemic, from industry-high attrition to a slowdown in bookings, he added. “Righting the ship is still a work-in-progress, and a combination of an improving macro-backdrop and consistent execution will be required in order for the company to re-establish itself as a vendor of choice in the space.”

El-Assal also raised Paychex (NASDAQ:PAYX) to Equal Weight as the company is due for reacceleration next year, citing professional employee organization revenue that is on a “firmer footing than commonly believed.”

On the other side of the fence, El-Assal downgraded Riskified (NYSE:RSKD) to Equal Weight from Overweight after the company unexpectedly lowered its 2023 revenue guidance.

“With tailwinds from tickets and travel dissipating, we see the company’s long sales and revenue conversion cycle as weighing on revenue growth acceleration,” the note said.

He also cut Green Dot Corp. (NYSE:GDOT) to Underweight, “as we await further clarity regarding the strategic direction of the business and the evolution of the model itself.”

SA’s Peer tab compares numerous metrics of the aforementioned paytech firms.

CTSH and PAYX gained 1.2% and 0.6%, respectively, in Thursday morning trading. RSKD, despite the bearish coverage, gained 2.4%, and GDOT retreated 3.1%.