Brokerages remain positive on TCS after Q3 results
Last updated: 11 Jan, 2021 | 12:53 pm
After TCS (Tata Consultancy Services) reported its strongest third-quarter growth in nine years, multiple foreign brokerage firms have maintained a positive stance on the stock.
Except for Nomura, all of the following firms have a target price above the current market price.
- Goldman Sachs said that TCS would be one of the key beneficiaries of the current wave of IT outsourcing and cloud migration given its scale of operation, wide set of capabilities/client base and a skilled employee set.
- TCS remains Bernstein’s top pick in the sector on the back of the scale advantage.
- Nomura maintained a Neutral rating on the stock, saying sanguine demand environment and robust execution provide dual benefits of revenue growth as well as margin expansion.
- Besides this, the likes of CLSA, HSBC and Jefferies upgraded their target price on the stock backed by stellar Q3 results.