CLSA bullish on Persistent Systems, Tech Mahindra for up to 27% potential upside post Accenture's Q1 beat
CLSA sees Accenture's Q1 beat as well as guidance upgrades to be more Accenture specific and hence maintains a cautiously optimistic view on IT stocks.
After Accenture posted strong Q1 earnings beating Wall Street estimates and even raised revenue growth guidance for the second quarter as well as the full year, Hong Kong-based global brokerage CLSA held that weak order book for most Indian IT service providers implies potential of further guidance upgrade for Infosys & HCL Technologies could be limited.
It added that revenue beat and guidance upgrade are more Accenture specific and potential of further guidance upgrades by INFY & HCL during 3QFY25 could be limited. Consequently, the global brokerage maintains a cautiously optimstic stance.
Maintain cautiously optimistic stance; O-PF - PSYS, TechM & Wipro U-PF on LTIM
IT stocks to buy after Accenture Q1 beat: Persistent Systems
IT stocks to buy after Accenture Q1 beat: The brokerage continues with its outperform rating on the stock with a target of Rs 8,462- implying potential gains of around 27 per cent.
IT stocks to buy after Accenture Q1 beat: Tech Mahindra
IT stocks to buy after Accenture Q1 beat: On the largecap IT stock, the brokerage maintains 'outperform' call with a target of Rs 1,884- meaning possible gains of over 7 per cent.
IT stocks to buy after Accenture Q1 beat: Wipro
IT stocks to buy after Accenture Q1 beat: CLSA continues with its outperform call on the stock with the target pegged at Rs 303, a downside of over 3 per cent.
IT stocks to buy after Accenture Q1 beat: LTIMindtree
CLSA has continued with its 'underperform' call on the stock with the target pegged at Rs 4,974- implying over 20 per cent downside.
IT stocks to buy: Morgan Stanley view on IT stocks
However, the commentary didn’t allude to any change in environment & attributed growth surprise to benefit from large deals