IT Stocks: TCS, HCL, Infosys jump after Morgan Stanley raises target prices for IT giants
Morgan Stanley presents a strong outlook for the Indian IT industry, raising targets for IT stocks such as TCS, HCL, Wipro, Tech Mahindra, L&T Technology, Tata Elxsi, and more.
IT Stocks on Wednesday: Stocks of Indian IT companies are trading as mixed bag after brokerage Morgan Stanley revised targets to be higher for most of the leading IT firms. The brokerage firm has a strong outlook for Indian IT companies, saying that higher revenue growth, improved margins, and double-digit EPS growth should keep volumes afloat for the companies.
What Morgan Stanley outlook says about IT sector
While Morgan Stanley is bullish about the IT sector, it has raised targets for HCL Tech, Infosys, Wipro, and Saint.
The brokerage has increased the target of IT shares by 11% to 29%.
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It says macro risks for the IT sector are slightly lesser than before.
The brokerage expects strong earnings from the sector in FY25.
As per the outlook, the EBIT margin is expected to improve from Q1 FY25 levels.
Morgan Stanley says that the large deal that the companies are signing will support growth.
Order bookings of IT companies are strong.
The brokerage estimated the sector's EPS growth to be in double digits in FY25.
Morgan Stanley says valuations of the companies will remain sustainable.
Amid an upbeat outlook from Morgan Stanley, ZeeBiz brings you the share performance of the IT companies in morning deals on Wednesday that Morgan Stanley has mentioned in its report.
The stock of Tech Mahindra recovered easrly losses to close up 0.49 per cent, or Rs 6.30, at Rs 1288.65 on BSE on Wednesday after Morgan Stanley downgraded its rating to underweight from equalweight on the company, raising its target to Rs 1210 from Rs 1060.
The TATA Group company stock ended the trade session higher by 0.13 per cent, or Rs 4.50, at Rs 3,587.65, after Morgan Stanley maintained its 'equal-weight' rating on the IT major, raising its target to Rs 3,730 from Rs 3,305.
Shares of HCL ended the day flat at Rs 1,261.55 each, after Morgan Stanley maintained its 'overweight' rating on the IT giant, raising the target to Rs 1,450 from Rs 1,200.
The Infosys stock recovered from losses early in the day to close higher by 0.51 per cent, or Rs 7.50, at Rs 1,467.55 after Morgan Stanley maintained its 'overweight' rating on the company. The brokerage has also raised the target of the IT firm to Rs 1,640 from Rs 1,440.
Wipro shares ended the session on a high note, rising 0.69 per cent, or Rs 2.85, at Rs 415.60 apiece after Morgan Stanley maintained its 'underweight' rating on the firm. The brokerage company has raised the target to Rs 390 from Rs 352.
Shares of Cyient were flying high in the morning session before closing the day up 0.74 per cent, or Rs 12.35, at Rs 1,622.00, after Morgan Stanley upgraded its rating to 'overweight' from 'equalweight'.
The brokerage company has also raised the target price of the Cyient stock to Rs 2,000 from Rs 1,550.
The stock of LTIMindtree ended the day in a positive terriroty, jumping by 1.50 per cent, or Rs 80.50, at Rs 5,441.95, after Morgan Stanley maintained an 'overweight' rating on the company.
The brokerage firm raised its target to Rs 6,150 from Rs 5,450.
L&T Technology Services
L&T Technology shares closed the day up 0.77 per cent, or Rs 36.35, at Rs 4,750.00 apiece after Morgan Stanley maintained an 'underweight' rating on the company.
The brokerage has also raised its share price target for the company to Rs 4,000 from Rs 3,200.
Shares of Mphasis capitalised on the early gains before closing the day's session up by 1.24 per cent, or Rs 30.20, at Rs 2,471.25 each, after Morgan Stanley maintained an 'equal-weight' rating on the IT firm.
Morgan Stanley has also raised its target to Rs 2,700 from Rs 2,400.
Tata Elxsi shares ended the day down 0.16 per cent, or Rs 11.55, at Rs 7,300.30 each after Morgan Stanley maintained an 'underweight' rating on the company.
The brokerage has also raised its target to Rs 6,400 from Rs 5,700 for the company.