TCS' results were in-line with expectations for the December quarter and analysts tracking the stock have mixed views after its earnings.
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.
The brokerage sees growth acceleration and improving margins driving a price-to-earnings (PE) re-rating in financial year 2027.
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.
Although initial results are encouraging, sustained execution, particularly in AI, will be key for a re-rating of the stock, the brokerage said.
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.
Equipment and software businesses drove nearly half of TCS' growth during the third quarter, Citi said.
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.
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.
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.
Shares of TCS ended 1.1% higher on Monday ahead of the earnings announcement at ₹3,243.
