Shares of Infosys and Tata Consultancy Services (TCS) witnessed a significant boost on Tuesday, November 21, 2023, following an upward revision of target prices by brokerage firm Bernstein. This positive development reflects the growing optimism surrounding the Indian IT sector’s prospects.
Bernstein’s Optimistic Outlook
Bernstein maintained its ‘outperform’ rating for Infosys, raising its target price to Rs 1,600 from Rs 1,580. The brokerage firm attributed this upward revision to Infosys’ strong performance in the recent quarter, its robust deal pipeline, and its positive outlook for the next fiscal year.
For TCS, Bernstein maintained an ‘outperform’ rating but cut the target price to Rs 3,800 from Rs 3,940. This slight adjustment reflects Bernstein’s view that TCS may face some near-term challenges due to the global economic slowdown. However, the brokerage firm remains confident in TCS’ long-term growth prospects.
The positive sentiment from Bernstein’s revised target prices propelled the shares of Infosys and TCS higher. Infosys’ stock closed 0.52% higher at Rs 1,443.70 on the BSE, while TCS’ shares ended 0.22% up at Rs 3,527.00 per unit.
The positive reaction to Bernstein’s revisions reflects the growing optimism surrounding the Indian IT sector. Despite some near-term headwinds, the sector is expected to benefit from strong demand for digital transformation services, cloud adoption, and cybersecurity solutions.
Infosys and TCS, being two of the leading IT companies in India, are well-positioned to capture this growth. Their strong track record of innovation, customer focus, and financial performance has made them attractive investments for both domestic and international investors.