Brokerage firm Investec upgraded Infosys to a ‘Buy’ rating from ‘Hold’ after the recent stock correction. The brokerage has a target price of ₹1,655 per share on the counter.
The brokerage wrote in its note that the risk-reward has improved across most IT stocks over the past month. It expects Tier-1 IT companies to offer 10-15% potential returns over the next year, supported by US rate cuts and vendor consolidation deals.Investec’s top Tier-1 picks include Tech Mahindra, Infosys, and TCS, while its preferred Tier-2 names are Mphasis, Zensar, and KPIT.
Meanwhile, JPMorgan upgraded TCS to ‘Overweight’ from ‘Neutral’, raising its target price to ₹3,800 from ₹3,650.
The brokerage said that TCS has underperformed the Nifty by 29% and the Nifty IT index by 6% so far in 2025, largely due to repeated earnings cuts on lower-than-expected growth and margin pressures.
However, JPMorgan said it does not believe the company’s business model is broken. It expects growth to recover in the second half of FY26, with TCS well-positioned to benefit from any rebound in client spending and business sentiment.
Analysts believe IT stocks could see further gains if the US Federal Reserve confirms a rate cut, though broader market sentiment remains vulnerable to geopolitical tensions and trade-related uncertainties.
