The brokerage analysed TCS’s last five share buybacks and found that they have provided technical support to the stock price from the initial announcement date until buyback closure.
The board of Infosys is scheduled to meet today to consider the buyback proposal. If approved, this will mark Infosys’s fifth share buyback in the last eight years, the first of which occurred in 2017. It would also be the first buyback in three years, with the last one announced in 2022.CLSA’s target on TCS
CLSA has maintained an ‘Outperform’ rating on TCS on the back of its attractive valuation and positive narratives around a share buyback, US Fed rate cuts, global AI spending and the resolution of the US-India trade war, which could lead to a stock rerating.The brokerage has a price target of ₹4,279 on the stock, implying a 38% upside from current levels.
While the broader demand commentary remains unchanged from Q1FY26, management sounded upbeat about revenue opportunities from AI, CLSA wrote in its note.
TCS’s management said that overall IT budgets are likely to expand due to AI, creating a net revenue-positive effect for the company.
Out of the 51 analysts covering TCS, 34 have a ‘Buy’ rating, 12 recommend ‘Hold’, and five have a ‘Sell’ rating.
Shares of TCS closed 1.99% higher on Wednesday at ₹3,110. However, the stock remains down 24% year-to-date in 2025.
Infosys, on the other hand, has already rallied 7% (or ₹100) over the last two trading sessions, gaining 5% on Tuesday and another 2% on Wednesday. The stock ended the day at ₹1,532 but is still down 18% year-to-date.
