TCS Q2 results: Citi prefers Infosys over TCS while JPMorgan slashes target to Rs 5100 – TCS Q2 Results – Missed Estimates
JPMorgan: Maintain Overweight| Target Price: Rs 5100
JPMorgan maintained its Overweight stance on TCS post Q2 results but has revised its target price down to Rs 5100 from Rs 5200.
The firm’s revenues fell by 0.4% quarter-over-quarter in constant currency terms, the weakest since the pandemic era. JPMorgan attributes much of the revenue growth to the margin-dilutive BSNL contract.
However, the brokerage expects growth to recover in the second half of the fiscal year, especially from financial services and tech segments.
As the BSNL contract unwinds, margins are anticipated to improve, heading back to traditional levels.
JPMorgan has made a slight cut to margins and EPS estimates for FY25 but would see any sharp correction as a buying opportunity.
