Morgan Stanley has maintained its overweight rating on Coforge and raised its target price to ₹2,030 per share, noting that the company delivered an all-round performance in Q2FY26 that helped allay investor concerns about growth momentum and profitability.
The brokerage said the company has shown strong execution and visibility for the second half of FY26, both in terms of revenue growth and margins. Management reiterated its commitment to maintaining a minimum EBIT margin threshold of 14%, which Morgan Stanley described as the right strategic approach to balance growth and profitability beyond FY26.
The brokerage said the company’s performance has reaffirmed investor confidence, with Q2 results reflecting consistent delivery on growth, margins, and free cash flow generation. Morgan Stanley believes that such steady execution across key metrics positions Coforge for a potential valuation re-rating in the coming quarters.
It added that the company’s robust deal pipeline and strong client retention remain key drivers for sustained revenue acceleration in FY26–27.
