Mphasis shares gain after multiple upgrades, raised targets by analysts post Q1 results

Shares of Mphasis Ltd. gained on Monday, July 28, after multiple analysts covering the stock not only gave it upgrades, but also raised their price targets  the stock. Analysts have projected a potential upside of up to 33% on the stock post its first quarter earnings.Brokerages Jefferies and Morgan Stanley have upgraded their ratings on the stock and have raised their price targets, along with Nuvama, to up to ₹3,500 per share. The stock ended the previous session at ₹2,631.1 apiece.

Jefferies

Jefferies has upgraded its rating on the stock to “buy” from “hold” and have raised their target price to ₹3,100 per share from ₹2,360 earlier.
It said the company’s first quarter earnings were in-line with estimates, but strong deal bookings were a key positive surprise.With strong deal wins, high exposure to the banking, financial services and insurance (BFSI) vertical where spends are picking up and a key overhang in the logistics vertical are now behind, Mphasis’ revenue growth outlook is looking up, Jefferies said.

It has raised the FY26 to Fy28 revenue to earnings-per-share estimates by 1-2% and expect 12% earnings per share compound annual growth rate (CAGR) over FY26-28 estimates.

Morgan Stanley

Morgan Stanley has upgraded its rating on Mphasis to “overweight” and has raised its price target to ₹3,500 per share from ₹2,650 apiece.
It said it does not expect strong deal wins the first quarter to be a one-quarter wonder and this should set stage for strong quarterly growth cadence ahead.

The drag from the logistics vertical could be behind, which would remove a key overhang, the brokerage said.

Improving growth trends create a re-rating potential for Mphasis and it now expects the stock to trade at a premium to LTIMindtree, implying strong upside potential, according to Morgan Stanley.

Nuvama

The brokerage has a “buy” rating on the Mphasis stock and has raised its price target to ₹3,250 per share from ₹2,950 apiece.

The brokerage added the growth in the BFSI and technology, media and telecom (TMT) verticals was rock-solid.

With the logistics vertical bottoming out this quarter, the overhang of it dragging down overall growth is also gone, Nuvama said.

Of the 38 analysts that have coverage on the stock, 22 have a “buy” rating, 10 have a “hold” rating and six have a “sell” rating.

Mphasis shares were trading 2.9% higher at ₹2,701.2 apiece at 9.45 am on Monday, July 28. The stokc has declined 5.2% this year, so far.

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