Wipro, TCS, Infosys: Should you buy, sell or hold IT stocks?
Global brokerages have revised their stance on select information technology (IT) stocks. The list includes names such as Wipro, Infosys, TCS, and others. Here is a revised list of IT stocks by the brokerages. As per Nomura, the growth in the IT sector is bottoming out in FY25F and will to improve in FY26F, thus Q1FY25F to be a mixed bag. The brokerage expects revenue growth for large caps to increase from three per cent in FY25F to 7.7 per cent in FY26F. Further, margins can improve gradually with large deal ramp-up and hiring pick-up in 2HFY25F. Moreover, the brokerage reckons earnings before interest and tax (EBIT) margin improvement of 20-110 basis points (bps) in FY25-26F for large caps.
(DISCLAIMER: The views and investment tips expressed by investment experts on zeebiz.com are their own and not those of the website or its management. zeebiz.com advises users to check with certified experts before taking any investment decisions.)
TCS
TCS:
Nomura upgraded TCS to 'neutral' and raised the target to Rs 3,800 from Rs 3,250. Menawhile, Goldman Sachs maintained a 'buy' on TCS and raised the target to Rs 4,450 from Rs 4,350.
Infosys
Infosys:
Nomura upgraded Infosys stock to 'buy' and raised the target to Rs 1,800 from Rs 1,400. Meanwhile, Goldman maintained a 'buy' on Infosys and raised the target to Rs 1,680 from Rs 1,650.
HCL Technologies
HCL Technologies
Nomura double upgraded HCL Technologies stock to 'buy' and raised the target to Rs 1,700 from Rs 1,400. Likewise, Goldman Sachs continued with a 'neutral' rating on HCL Technologies and raised the target to Rs 1,420 from Rs 1,370.
Wipro
Wipro:
Nomura upgraded Wipro to 'buy' and raised a target of Rs 600 from Rs 410. Conversely, Goldman Sachs iterated 'sell' on Wipro and raised the target to Rs 440 from Rs 430.
Coforge
Coforge:
Nomura maintained a 'buy' on Coforge and raised the target to Rs 6,670 from Rs 5,800.
Tech Mahindra
Tech Mahindra:
By maintaining a 'buy' rating on Tech Mahindra Nomura raised the target to Rs 1,600 from Rs 1,350. Meanwhile, Goldman Sachs continued with a 'sell' on Tech Mahindra and raised the target to Rs 1,160 from Rs 1,020
Persistent Systems
Persistent Systems:
Nomura iterated a 'neutral' rating on Persistent Systems and raised the target to Rs 4,100 from Rs 3,400
Mphasis
Mphasis:
Nomura continued with an 'underperform' rating on Mphasisand raised the target to Rs 2,300 from Rs 2,010.