DXC Technology

DXC pitch long Amitaabh

Thesis

Recommendation to long DXC Technology with a 3-yr target price of $70 due to ongoing earnings stabilization led by the new CEO, an undervalued Luxoft segment representing a $5 Bn valuation opportunity, and attractive current valuations given DXC’s earnings stabilization and asset-light, cash generative operations.

Did it work?

failed confidence: high

The stock price of DXC Technology has declined by 65.8% since the pitch, which is a significant deviation from the long thesis that anticipated a target price of $70. Given that 71 months have elapsed, which is well beyond the 3-year target horizon, the thesis has not materialized as expected, indicating a failure of the investment thesis.

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