Tuesday's top brokerage calls: Tata Consultancy Services

SUMMARY

Brokerage Radar: JP Morgan does not see further upside triggers for Tata Consultancy Services while Morgan Stanley says revenue upgrades are unlikely for the technology major. Here are what brokerage firms say about TCS -

By CNBCTV18.comApr 12, 2022 8:20:56 AM IST (Published)

Jefferies on TCS | Shares of Tata Consultancy Services were at a 10 percent premium to Infosys shares despite having 3 percent lower earnings growth, as per Jefferies. The brokerage firm has raised FY23-24 estimates by 1-2 percent while maintaining its 'hold' rating on TCS stock.

Morgan Stanley on TCS | The company faces downside risks from ongoing supply-side challenge, Morgan Stanley said. Even with a good Q4 order intake, revenue upgrades are unlikely, said the brokerage firm maintaining its 'equal-weight' rating on the stock.

JP Morgan on TCS | The stock is trading at 31 times one year forward PE and is 11 percent premium to Infosys and 8 percent premium to Accenture, JP Morgan said. The brokerage firm does not see further upside triggers.

CLSA on TCS | The brokerage firm has trimmed its FY23 EPS estimate by 1.6 percent and FY24 estimate by 0.4 percent. It says that hiring and order book are strong but margin volatility is an overhang.