Global View: Brokerages remain bullish on Infosys and TCS; cuts target for Wipro post Q3

The Indian markets are likely to head higher on Thursday tracking positive global cues. The Nifty50 is likely to head towards 18300 levels.

TCS, Wipro & Infosys came out with their results for the quarter ended December post market hours on Wednesday.

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

TCS: Overweight| Target Rs 4400

The largest IT company in India Tata Consulting Services (TCS) reported a 1.5% QoQ rise in the consolidated profit at Rs 9,769 crore for the quarter ended December 31, 2021.

It had posted a profit of Rs 9,624 crore in the previous quarter ended September 30, 2021. It also announced share buyback at Rs 4,500 per share, at a premium of 16.67 per cent over the last traded price of the stock.

The company will buy back shares worth Rs 18,000 crore.

Morgan Stanley maintained an overweight rating on TCS with a target price of Rs 4400 post December quarter results that translate into an upside of nearly 14 per cent from Rs 3860 recorded on 12 January.

Better growth more than offsets margin miss, said the note. The global investment bank was surprised on revenue growth after a gap of 2 quarters.
 
The 3QF22 revenue performance was better than higher end of the Street expectations which is a positive sign. The management commentary supported expectations of strong growth in CY22.

Infosys: Buy| Target raised to Rs 2415

Infosys reported a 7.2% QoQ rise in its consolidated profit at Rs 5,809 crore for the quarter ended December 31, 2022. It had posted a profit of Rs 5,421 crore in the previous quarter ended September 30, 2021.

Its revenue from operations grew 7.7% QoQ to Rs 31,867 crore in Q3FY22 compared to Rs 29,602 crore posted in the previous quarter.

Goldman Sachs maintained a buy rating on Infosys post Q3 results but raised the target price to Rs 2415 from Rs 2329 earlier that translates into an upside of 28 per cent from Rs 1877 recorded on 12 January.

The beat was on the back of strong digital capabilities, increase revenue growth forecasts leading to EPS increasing by up to 3% over FY22-26E.
 
For CY22, the management highlighted the demand environment to remain very robust.

Wipro: Neutral | Target cut to Rs 680

IT major Wipro reported a 1.3% QoQ rise in its consolidated profit at Rs 2,969 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 2,930 crore in the previous quarter ended September 30, 2021. I

JPMorgan remained Neutral on Wipro post Q3 results, and slashed the 12-month target to Rs 680 from 690 earlier which translates into a downside of more than 1 per cent from Rs 691 recorded on 12 January.
 
The global investment bank slashed FY23/24E EPS by 2%. The 3QFY22 results remain mixed with a miss on revenues but was largely in-line with margins.
 
Organic CC QoQ growth slowed down to 2.5% from high-water marks seen in 1Q/2Q222, said the note.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)