Massive Split on TCS: One brokerage sees a big rally, another warns of a sharp drop; what should investors do?

TCS Share Price Today: Shares of Tata Consultancy Services (TCS) were trading at Rs 3,214.70, up 0.71 per cent at 12:22 pm on Thursday, even as global brokerages issued sharply divergent views on India’s largest IT services company. The stock has gained 2.63 per cent over the past month but remains down 21.84 per cent year-to-date, prompting fresh assessments from analysts.

Brokerages views on TCS: Should you buy, sell or hold the stock

JP Morgan reiterated its overweight call on TCS with a target price of Rs 4,050, citing steady but subdued demand trends. The brokerage said deal activity continues to be driven by cost optimisation, vendor consolidation, and operating model transformation, with rapid-build agile projects adding to near-term momentum.

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Vertical commentary also remained mixed. JP Morgan noted improvement in BFSI and Tech & Services, while communications and media continue to be weak but stabilising. Automotive and retail segments remain steady. It added that North America is performing better than Europe and the UK, providing some cushion to growth.

In contrast, Citi struck a distinctly downbeat tone, maintaining its sell rating and target price of Rs 2,835, warning that demand remains soft though stable. While the brokerage acknowledged that deal delays have eased and some second-half acceleration is possible, it said overall momentum remains insufficient to justify a more positive stance.

Citi highlighted ongoing talent overhaul initiatives at TCS — including niche-skill hiring, increased fresher additions and localisation efforts — but noted that these measures will take time to translate into meaningfully stronger growth or margins.

Macquarie most bullish with Rs 4,810 target; flags impact of $700 million coastal cloud deal

Macquarie issued the most optimistic view among the three, maintaining an outperform rating with a target price of Rs 4,810. The brokerage said TCS’s aggressive push into AI, cloud and Salesforce-led transformation is beginning to reshape its medium-term growth profile.

The firm highlighted TCS’s $700 million all-cash acquisition of US-based AI services and Salesforce consultancy Coastal Cloud, one of the company’s largest deals since listing in 2004. The transaction is expected to close by January 31, 2026.

Macquarie said the acquisition deepens TCS’s capabilities across the Salesforce ecosystem and supports its broader inorganic growth strategy, which has gained pace after years of relying mainly on organic expansion. It noted that TCS recently bought US-based ListEngage MidCo for $72.8 million and has committed $6.5 billion over six years to build 1 GW of data centre capacity to strengthen its AI and cloud portfolio.

Coastal Cloud, founded in 2012 and headquartered in Florida, is among the world’s largest pure-play Salesforce partners, serving more than 400 clients with about 400 certified professionals.