Bernstein has maintained an Outperform rating on Coforge Ltd, assigning a target price of ₹2,038, which implies a 21.3% upside from the current market price of ₹1,680.
The brokerage highlighted that Coforge’s Q1FY26 revenue rose 8% quarter-on-quarter, led by robust performance in the Americas and the travel vertical. Bernstein noted that this geographical and sectoral traction supports a strong demand outlook for the company.
However, the EBIT margin came in at 13.2%, missing estimates by 50 basis points. This has led to some scrutiny on the company’s margin trajectory. Nevertheless, management remains confident of achieving 14% EBIT margin by FY26, indicating an improving operational profile.
Bernstein also noted that the recent correction in Coforge’s stock price offers an attractive entry point for long-term investors, especially given the company’s sustained growth visibility and digital transformation pipeline.
Disclaimer: The views and recommendations expressed in this article are those of Bernstein and do not represent the views of this publication. Investors are advised to consult their financial advisor before making any investment decisions.
