Jefferies has maintained a “Buy” rating on Tata Consultancy Services (TCS), with a target price of ₹4,735. With the current market price at ₹4,227.90, this implies a potential upside of approximately 12%.
TCS’s Q2 results missed estimates, with de-growth in North America and a margin miss standing out as key negatives. However, Jefferies highlighted steady hiring and a continued recovery in the BFSI (Banking, Financial Services, and Insurance) sector as positive signs for future growth.
Additionally, the ramp-down of the BSNL deal may provide an opportunity to improve margins going forward. Jefferies has cut its estimates for TCS by 1-2% and expects the company to achieve an 11% EPS compound annual growth rate (CAGR) over FY25-27.
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