Macquarie said that Tata Consultancy Services is better placed than Infosys to capture the trend in cloud migration deals. The brokerage has an ‘outperform’ rating on TCS shares.
Macquarie anticipates that TCS will grow faster than Infosys in both FY26 and FY27
Macquarie has given an ‘outperform’ call on Tata Consultancy Services (TCS) shares, setting a target price of Rs 5,740 per share, which implies a 27 percent upside from the previous close. Tata group firm TCS will grow faster than Infosys in both FY26 and FY27, said Macquaries in a note.
The brokerage expects TCS to benefit from a rebound in spending, particularly in cloud migration deals, which are likely to be bundled between applications and infrastructure services. Macquarie said that TCS is better positioned than Infosys to capture this trend.
Tata Consultancy Services share price ended flat at Rs 4,511 on Tuesday, 18 September. TCS stock has gained over 18 percent so far this year since January, marginally outperforming NSE Nifty 50, which has risen about 17 percent during the same period.
Infosys stock, on the other hand, has jumped nearly 26 percent so far this year. The share price ended flat at Rs 1,950 on Tuesday.
Earlier, in July, TCS’ Q1 FY25 financial results (April-June) beat analyst expectations, major brokerage upgrades and upward revision in target prices. The IT major reported that revenue from operations increased 5 percent to Rs 62,613 crore for the June quarter as against Rs 59,381 crore in the same quarter last fiscal. Net profit rose 9 percent to Rs 12,040 crore from Rs 11,074 crore in the year-ago period.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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