JP Morgan neutral on IT stocks ahead of Q3 earnings; Check latest ratings and target prices for stocks

Ahead of the IT earnings season, scheduled to start on January 11, another global brokerage, JP Morgan, has provided its ‘neutral’ stance on the IT sector. The 5 themes that prompted the global brokerage to turn ‘neutral’ on the stock are: pivot to cost saving, declining drags from laggard industries, pro-cyclicality, new-term Gen AI preparatory work, and low base in CY 2023.

Individually, stocks' ratings have been changed, while targets have been raised.

Earlier, Citi also gave its bearish view on IT stocks as it saw revenue growth at IT firms under its coverage universe to come in at 6 per cent in constant currency terms for FY25, as against its 2 per cent for FY24 and 8 per cent before the pandemic. Also, it views valuations as still at risk.