Business · India Bureau
UBS Upgrades Indian IT Stocks With Aggressive Price Targets
UBS has elevated its outlook on Indian information technology companies, upgrading Tech Mahindra and Coforge to Buy ratings with significantly higher price targets. The moves reflect growing confidence in the sector's recovery prospects.
LSN India ·
Swiss investment bank UBS has revised its stance on select Indian IT services firms, signalling optimism about their near-term performance. Tech Mahindra has been upgraded to Buy from a Neutral rating, with the target price increased to Rs 1,865 per share from Rs 1,460—representing potential upside of nearly 28 percent at current levels.
Coforge has also received a similar upgrade to Buy from Neutral, though the magnitude of the price target adjustment was not disclosed in the initial announcement. The dual upgrades underscore UBS's conviction that both companies are well-positioned to benefit from anticipated improvements in IT spending cycles and margin expansion.
The upgrades come as Indian IT services providers face a mixed operational environment, with some segments showing resilience while others contend with cautious client spending. UBS's elevated targets suggest the brokerage believes these headwinds will ease, allowing the companies to demonstrate stronger earnings growth trajectories.
The moves add to recent positive momentum in India's IT sector, which has seen gradual sentiment improvement following an extended period of client-side budget constraints. Investors will closely monitor these companies' upcoming quarterly results for evidence that the sector's recovery is taking hold.