TCS, Infosys, HCL Tech, TechM, Wipro: What lies ahead for IT stocks? Here's what Morgan Stanley says

IT stocks to buy: Following Dublin-based multinational IT services company Accenture's results, Morgan Stanley has moderated its growth estimates for the India IT services sector and lowered its earnings per share (EPS). A better macro setup and improved commentary from hyperscalers and investor positioning keep the global brokerage firm neutral to positive on the IT space. "Rebound hopes in H2 should keep multiples afloat," Morgan Stanley said in its note.

The brokerage prefers Infosys, Tata Consultancy Services (TCS), and HCL Technologies. Check out the revised targets on the following IT stocks:

HCL Tech share price target

The brokerage has upgraded the Noida-headquartered IT company to an overweight call from an equal-weight rating. The brokerage has cut the target on the IT major to Rs 1,730 from Rs 1,750.

TCS share price target

The brokerage has maintained an overweight rating on TCS; however, it has cut the target by Rs 250 to Rs 4,350 on the Tata Group IT major stock.

Infosys share price target

The brokerage has retained an overweight rating on Infosys, the country’s second-largest IT company. However, it has cut the target to Rs 1,750 from Rs 1,820 earlier.

According to the brokerage, Infosys' Q4 results, which are due on April 18, and FY25 revenue guidance will be a key catalyst for the stock. The analyst at the brokerage expects 3-6 per cent CC revenue growth guidance in the base case.

"Base case growth hinges on strong deal wins in FY24, with a potential bounceback in H2, implying better conversion of deal wins into revenue," the brokerage added.

Tech Mahindra share price target

Morgan Stanley has maintained an underweight call on the Mahindra Group company with a reduced target of Rs 1,190 from Rs 1,220 earlier.

Wipro share price target

Morgan Stanley has continued an underweight rating on Wipro, with a target cut to Rs 450 from Rs 475.

Cyient share price target

The brokerage maintained an overweight rating on Cyient Limited. The brokerage has slashed the target to Rs 2,400 from Rs 2,450 on the counter.

Mphasis share price target

Morgan Stanley has retained an equal-weight rating on the mid-cap IT firm with a Rs 100 cut on the target price to Rs 2,600.

Coforge share price target

Morgan Stanley has maintained an overweight call on Corforge. The brokerage has slashed the target by Rs 950 on the IT stock to Rs 6,500.

LTIMindtree share price target

The brokerage has maintained an equal-weight rating on the L&T Group company and has reduced the target price to Rs 4,800 from Rs 5,700 earlier.

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