Jul 12, 2024 12:06 PM IST
TCS share price: TCS’ growth across all verticals, excluding telecom, coupled with net hiring at a seven-quarter high, are signs of a revival, Jefferies said.
Tata Consultancy Services’ shares gained today after India’s top IT services firm reported first-quarter results which signalled early signs of revival for the sector. The gains pushed the IT index up 3.4%- its highest level since January 2022. TCS’ growth across all verticals, excluding telecom, coupled with net hiring at a seven-quarter high, are signs of a revival, Jefferies said after TCS Chief Executive K Krithivasan said that he expects FY25 to be better than the previous fiscal although market conditions are quite volatile.
Following this, at least 11 brokerages raised their price target on the stock after the results, with the median at 4,309 rupees compared to 4,262.50 a month ago. Around five analysts have upgraded their rating “buy” from “hold”. The company’s peer Infosys is also rated “buy” while Wipro is rated “hold”.
Macquarie said, “With a return to growth in its key North America market, we think the worst is over.”
Nomura said in a note, “(An) Interest rate cut cycle, likely in the second half of the year and a potential thaw in decision making by US corporates post elections in November 2024 could provide fillip to demand.”
