{"id":"f-e550251d2f-0161b4e7-1489-5a6b-9209-cd638ec0ab52","title":"TCS' highest share price target implies potential upside of nearly 50% after Q3 results","description":"Nomura rbelieves that significant margin improvement for TCS remains unlikely in financial year 2027 without growth.","timestamp":1768283700,"category":"business","headline":"TCS' highest share price target implies potential upside of nearly 50% after Q3 results","modifiedHeadline":"TCS Stock Could Surge 50%, Says Analyst","subCategories":["scid_0f705da1"],"region":"IN","bundleMetaData":{"bundleId":"ece1ae3d-908e-48c7-9e53-a4aa910ee4db","bundleTitle":"Grow Your Money","cardData":null},"iabCategoryId":"68","fcSummary":"Despite a 25% correction in the last year, most analysts still recommend buying TCS shares. Following in-line December quarter results, opinions are mixed, with some expecting growth and margin improvements while others cite concerns about international business and margin sustainability.","summary":"TCS' shares may surge! Post Q3 results, Nomura predicts a nearly 50% upside, but cautions margin growth hinges on FY27 performance.","ctaUrl":"https://trends.glance.com/newz/Economy/IN/en/cnbc-tv18/f-e550251d2f-0161b4e7-1489-5a6b-9209-cd638ec0ab52","sourceUrl":"https://www.cnbctv18.com/market/tcs-share-price-q3-results-highest-target-upside-returns-buy-sell-ai-19819651.htm","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/tvKZjh4JPiD0.webp","content":"Over two-thirds of the analysts having coverage on Tata Consultancy Services Ltd\n. (TCS), India's largest IT Services company, continue to have a \"buy\" rating on the stock, despite the stock having corrected 25% over the last 12 months.\n\n
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\n TCS' results were in-line with expectations for the December quarter and analysts tracking the stock have mixed views after its earnings.\n
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\n Macquarie has the highest price target on TCS, that of ₹4,810, which indicates an upside potential of 48.2% for the stock from Monday's closing levels.\n
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\n The brokerage sees growth acceleration and improving margins driving a price-to-earnings (PE) re-rating in financial year 2027.\n
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\n Kotak Institutional Equities maintained its \"buy\" rating on TCS with a price target of ₹3,675. The brokerage stated that TCS is well-positioned to be a core partner to clients across cloud, data and AI.\n\n
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\n Although initial results are encouraging, sustained execution, particularly in AI, will be key for a re-rating of the stock, the brokerage said.\n
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\n On the flip side, Citi has maintained its \"sell\" rating on TCS with a price target of ₹3,020, stating that the muted growth seen in the company's international business is likely to disappoint investors as expectations had gone up with positive management commentary at the end of Q2.\n
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\n Equipment and software businesses drove nearly half of TCS' growth during the third quarter, Citi said.\n\n
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\n Nomura remains \"neutral\" on TCS with a price target of ₹3,300. The brokerage believes that significant margin improvement for TCS remains unlikely in financial year 2027 without growth.\n
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\n HSBC also retained its \"hold\" rating on the stock with a ₹3,450 price target, stating that risk-reward looks balanced to us and that demand commentary was largely positive, although they are unlikely to be better than that already assumed by street expectations.\n
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\n 51 analysts have coverage on TCS, of which 35 have a \"buy\" rating, 12 say \"hold\", while four have a \"sell\" rating on the stock.\n\n
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\n Shares of TCS ended 1.1% higher on Monday ahead of the earnings announcement at ₹3,243.","readDurationInMinutes":"4","author":{"name":"CNBC TV18","logo":"https://glance-mob.glance-cdn.com/public/bubble/jpeg/ecc3d19b-fc52-4a39-881c-5b0936ae723b.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"383191425","type":"COMSCORE"}],"pointerSummary":["TCS has mostly \"buy\" ratings despite a 25% drop in 12 months.","Macquarie sees 48.2% upside; Citi a \"sell\" due to growth concerns.","Analysts cite AI execution & margin growth as key for TCS re-rating."],"tags":["TCS","TataConsultancyServices","StockAnalysis","Investment","Q3Results","SharePriceTarget","ITServices","IndianStockMarket","Macquarie","KotakEquities","Citi","Nomura","HSBC","StockRatings","BuyRating","HoldRating","SellRating","FinancialYear2027","AIRating"],"consent":true,"redirectionEnabled":false}

TCS' highest share price target implies potential upside of nearly 50% after Q3 results

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