This technology stock could be among the hardest hit if Trump cracks down on work visas

Cognizant Technology Solutions office in India.
Madhu Kapparath | Mint | Getty Images

Morgan Stanley on Tuesday downgraded Cognizant Technology Solutions to equal weight from overweight on concern President Donald Trump could soon crack down on work visa programs.

"Investors continue to be wary of CTSH's dependence on skilled labor visas and the potential for Congress to pursue new regulation which may have an adverse impact on the cost or availability of visas in the market," equity analyst Brian Essex wrote in a research note.

Cognizant Technology, a New Jersey-based company that provides outsourcing services to a range of industries, is one of the main users of nonimmigrant visas, also known as H1-Bs.

"While the new administration has placed a greater focus on border security and illegal immigration, it has become apparent that skilled labor reform may not be immune," Essex said.

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