Tier 1 companies reported quarter-on-quarter constant currency (CC) revenue growth ranging from -1.6% to 3.6%, with most surpassing estimates, according to Sharekhan. For Tier-2 companies, the quarter was mixed, with CC revenue growth ranging from -3.1% to 5.6% QoQ.
Following these earnings reports, brokerages have issued their views on IT stocks, and ETMarkets has compiled buy recommendations from top analysts.Here’s what they had recommended:
TCS | Upside: Up to 6.5% from current levels
Top brokerages with a buy rating on the stock include Jefferies, JPMorgan, Nuvama, and Sharekhan, with target prices of Rs 4,615, Rs 4,600, Rs 4,800, and Rs 4,750, respectively. Jefferies upgraded the stock from ‘Hold’ and raised its target price, while JPMorgan and Nuvama also increased their targets. The stock closed at Rs 4,506.75, with earnings surpassing Street estimates.
Infosys | Upside: 8%
Several brokerages, including Bernstein, Nomura, Motilal Oswal, and Sharekhan, have maintained their buy ratings on the stock. Bernstein projects the highest upside with a target price of Rs 2,100, an 8% increase from Wednesday’s closing price of Rs 1,939.20. Bernstein has also raised its target price from Rs 1,650.
Nomura has upheld its buy rating, raising its target price to Rs 1,950 from Rs 1,800. Motilal Oswal has set a target price of Rs 2,000, while Sharekhan’s target is Rs 2,050.
HCL Technologies | Upside: Up to 8%
On HCL Technologies, brokerages including Motilal Oswal, Nomura, and Nuvama have a buy view. Motilal has the highest target among its peers at Rs 1,850 which is an 8% upside over the current market price of Rs 1,714.
Japanese brokerage Nomura pegs the target price at Rs 1,720 while Nuvama has placed the target at Rs 1,800. Sharekhan has a target of Rs 1,805.
Wipro | Upside: Up to 12%
Nomura has issued a ‘Buy’ recommendation on the stock with a target price of Rs 600. Although Wipro’s 2Q growth guidance is slightly below Nomura’s expectations of 0% to +2%, the company indicated that it is entering 2Q with higher confidence compared to its entry into 1Q.
LTIMindtree | Upside: Up to 14%
Nuvama, Sharekhan, and Motilal Oswal all issued buy recommendations following the company’s Q1 earnings report. For the quarter ending June 30, 2024, the company posted a 1.5% year-on-year (YoY) increase in consolidated net profit, reaching Rs 1,134 crore. Revenue from operations for the quarter was Rs 9,143 crore, up 5% YoY from Rs 8,702 crore in the same period last year.
Nuvama and Motilal Oswal set a target price of Rs 7,000, while Sharekhan has a target of Rs 6,400.
Tech Mahindra | Upside: Up to 11%
Nomura and Sharekhan had recommended a buy rating on Tech Mahindra stock with targets of Rs 1,600 and Rs 1,810, respectively, following the company’s April-June quarter earnings. While Nomura’s target has been achieved, there is still an 11% upside to Sharekhan’s target. The stock closed at Rs 1,627.35 on the NSE on Wednesday.
Sharekhan has also issued buy recommendations for several other stocks, including L&T Technology Services (target price: Rs 5,500), Mastek (target price: Rs 3,150), Persistent Systems (target price: Rs 5,220), and Birlasoft (target price: Rs 780).
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
