TCS, HCL Technologies, Wipro stocks rise as CLSA raises target prices

IT stocks to buy: Global brokerage CLSA, in its latest report, notes that amid uncertain macro setups, IT companies would guide conservatively. The global brokerage keeps an unchanged outlook for key verticals such as banking, retail, hi-tech, and telecom.

The analysts at the brokerage expect Tata Consultancy Services (TCS), among large Indian IT firms, to top the charts in terms of revenue growth in constant currency (CC) terms on a quarter-on-quarter (QoQ) basis. According to CLSA, Infosys, Wipro, LTIMindtree, and Tech Mahindra could report a decline in their revenue.

Given the delay in the discretionary demand revival, the brokerage has cut earnings per share (EPS) estimates by up to 11 per cent over FY24–26CL. Given this, CLSA has upgraded TCS, HCL Technologies, and Tech Mahindra.

CLSA on TCS
The brokerage has upgraded the Tata Group IT major stock to an “underperform” call from a “sell” call. The brokerage has raised the target to Rs 4,043 from Rs 3,925 earlier.

CLSA on HCL Tech
CLSA has upgraded the Noida-headquartered IT company to an “underperform” rating from the “sell” call, with a raised target of Rs 1,553 from Rs 1,536 earlier.

CLSA on Tech Mahindra
CLSA has upgraded the stock to a “buy” call from an “outperform” rating on the Mahindra Group company; however, the brokerage has reduced the target to Rs 1,508 from Rs 1,518. ZeeBiz