'TCS management commentary is...': How analysts view Tata group IT bellwether's Q3 FY25 results

CLSA has upgraded TCS to 'accumulate' from 'hold' and raise its target price for the IT stock to Rs 4,546 from Rs 4,251. 

 

According to the brokerage, the IT major's Q3 performance is dismal from growth and margin perspectives. However, the TCS valuation looks relatively attractive over a five-year average, says CLSA. 

Jefferies has maintained a 'buy' call on TCS with a reduced target price of Rs 4,760 per share instead of the earlier Rs 4,775. 

 

According to the brokerage, the IT firm's Q3 performance is in line with estimates and its management commentary mentioning early signs of revival in discretionary spends is encouraging. 

 

According to Jefferies, which expects TCS to clinch a 9 per cent EPS CARG over the FY25-FY27 period, the Tata group IT sock's valuation is attractive at a 27x price-to-earnings multiple even as it factors in near-term growth headwinds. 

Goldman Sachs has maintained a 'buy' rating on TCS but cut its target price for the IT stock by Rs 50 to Rs 4,550.

 

Citi has retained its 'sell' call on TCS.

The brokerage has also cut its target price for the IT bellwether's stock by Rs 50 to Rs 3,900.

Bernstein has maintained an 'outperform' rating on TCS while revising its target price to Rs 4,700 from Rs 4,820. 

 

Macquarie has kept its 'outperform' rating on TCS with a target price of Rs 5,620 per share. 

 

JPMorgan has continued with its 'neutral' rating on TCS with a target of Rs 4,500 per share.