Morgan Stanley sees "strong" outlook for FY25 for Indian IT stocks

Mphasis

27/09/2023 09:00

** Morgan Stanley raises PTs by 11-29% for several Indian IT
service providers, including Tata Consultancy Services  TCS.NS ,
HCL Tech  HCLT.NS , Infosys  INFY.NS , LTIMindtree  LTIM.NS  and
Cyient  CYIE.NS 
    ** Sees strong outlook on FY25 revenue growth and
double-digit margin growth to keep valuations afloat 
    ** Raises PT of Nifty IT  .NIFTYIT  stocks - HCLT to 1,450
rupees from 1,200 rupees, LTIM to 6,150 rupees from 5,450
rupees, INFY to 1,640 rupees from 1,440 rupees; maintains
"overweight" on all three stocks
    ** Increases PT of TCS  TCS.NS  and Tech Mahindra  TEML.NS 
but maintains "equal weight" and "underweight" respectively
    ** Raises PT of NIFTY mid-cap  .NIFMDCP100  stock Cyient
 CYIE.NS  to 2,000 rupees from 1,550 rupees, maintains
"overweight" on stock
    ** IT stocks rebound by 0.5% on Wednesday after falling more
than 2% cumulatively for six straight sessions
    ** IT index up 14% so far this year vs Nifty 50's 8.7% gain 

 (Reporting by Ashna Teresa Britto in Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com ; ( +91 8078332441))