Tata Consultancy Services (TCS) shares gained more than 2% in morning trade on Monday after global brokerage firm JPMorgan upgraded the stock. As of 9:51 AM, the shares were trading 2.56% higher at Rs 3,132.30.
The brokerage raised its rating on TCS to “overweight” from “neutral” and increased the price target to ₹3,800 per share from ₹3,650 apiece. The revised target implies an upside potential of nearly 24.4% from Friday’s closing price of ₹3,054.7.
JPMorgan highlighted that TCS has lagged behind the benchmark indices this year, underperforming the Nifty 50 by 29% and the Nifty IT index by 6%. The underperformance was attributed to successive earnings downgrades following lower-than-expected growth and shrinking margins.
However, the brokerage firm said it does not see TCS’ business model as broken and expects growth recovery to start in the second half of FY26. It has also moderated international constant currency and year-on-year growth assumptions to 0% and 5% in FY26 and FY27, respectively.
At the same time, JPMorgan has raised its margin estimates by 55 basis points for FY26 and 57 basis points for FY27. This revision is expected to support a 2–3% earnings-per-share (EPS) upgrade over the next three years.
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