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TCS share price jumps after Q1 results, brokerages say 'worst is over' for the stock
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.
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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".
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Macquarie said, “With a return to growth in its key North America market, we think the worst is over.”
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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.”
