Global brokerage firm Jefferies has recently released its updated outlook on major Indian IT companies, adjusting both their ratings and price targets. These revisions come amid evolving macroeconomic conditions, shifting client budgets, and the increasing role of digital transformation across industries. The report highlights selective optimism in an otherwise cautious environment, with Infosys, Coforge, and Sagility emerging as key picks.
Infosys (INFO) has been upgraded to a Buy rating, even though the price target has been trimmed from ₹1,835 to ₹1,700. This still implies a potential upside of about 19%, suggesting the stock remains attractive in the long term despite near-term volatility. Similarly, Coforge has seen its rating move to Buy, with its price target reduced to ₹7,860 from ₹10,350. Yet, it still offers an upside potential of 14.3%. Sagility, too, has been upgraded to Buy with a revised price target of ₹48 (down from ₹64), but shows the highest potential return among the reviewed stocks at 22.6%.
In contrast, HCL Technologies (HCLT) and Tata Consultancy Services (TCS) have been downgraded to a Hold rating. HCLT’s price target has been lowered sharply to ₹1,520 from ₹1,900, reflecting a potential downside of -11.3%. Similarly, TCS has seen a cut in its target to ₹3,300 from ₹4,530, indicating a downside of -14.6%. These downgrades point to concerns around short-term earnings growth, margin headwinds, and slower deal ramp-ups.
Other IT names like LTIMindtree, Tech Mahindra, and Mphasis continue to hold neutral ratings, with moderate adjustments to their targets. The general sentiment from Jefferies suggests that while top-tier IT companies may face a challenging environment in the immediate future, mid-tier and niche players still offer meaningful upside for discerning investors.
Overall, this revised guidance from Jefferies reflects a selective approach in the Indian IT space. Investors are encouraged to focus on companies with stronger deal pipelines, operational efficiencies, and favorable client mix. While market uncertainty persists, long-term opportunities remain — particularly in firms like Infosys, Coforge, and Sagility, which Jefferies believes are better positioned for the next growth cycle.
Disclaimer:
This article is for informational purposes only and should not be considered financial advice. Stock investments carry market risks. Readers should perform their own due diligence or consult a licensed financial advisor before making any investment decisions. The data and recommendations mentioned are based on a recent Jefferies report and are subject to change without notice.