Jefferies has reiterated its Buy rating on Tata Consultancy Services (TCS), setting a target price of ₹4,760, which indicates a potential upside of 17.72% from the current market price of ₹4,044.00.
The brokerage highlighted Q3FY25 performance in line with estimates, but management’s commentary on early signs of revival in discretionary spending, particularly in North America BFSI, and a healthy order book, are encouraging. Additionally, the ramp-down of the BSNL deal could provide margin improvement opportunities.
Jefferies expects 9% EPS CAGR over FY25-27, noting that at 27x P/E, TCS’s valuation is attractive and already factors in near-term growth headwinds.
Disclaimer: This article is for informational purposes only and not investment advice. Please consult a financial advisor before making investment decisions.
