Brokerage Morgan Stanley raised target prices of top and mid-tier IT services companies, while maintaining largely favourable ratings.
It remains bullish on the IT sector, saying the set-up looks positive despite heady valuation multiples.
The brokerage has stuck with its key calls TCS and Infosys, where the growth visibility is currently the highest. The margin expectations for the companies appear to be reasonable.
Morgan Stanley has retained its "overweight" call on Infosys and raised the target price to Rs 1,820 per a from Rs 1,700. TCS' target price has been raised from Rs 4,240 to Rs 4,600, while maintaining its "overweight" rating.
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Morgan Stanley has left Wipro's rating unchanged at "underweight" but was bumped up the price target to Rs 475 from Rs 460 apiece.
It has kept its "equal-weight" call on HCLTech, raising the price target to Rs 1,750 apiece. Coforge saw a hike in its target price to Rs 7,450 apiece, with an "overweigh" call.
Cyient and LTIMindtree were the two firms that saw their target price slashed. Cyient's was slashed to Rs 2,450, while that of LTIMindtree was cut to Rs 5,700 apiece.
In a contrary move, on March 5,CLSA downgraded TCS and HCL and reiterated its "sell" call on Wipro and LTIMindtree. While the 2024 growth outlook on the sector remains "weak at best", this is not being reflected in valuations of the stocks, CLSA analysts have said.
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