Jefferies has significantly cut its target prices for Indian IT stocks by up to 33%, citing AI’s potential to shift the IT business mix towards consulting and implementation while shrinking managed services. This shift is expected to increase cyclicality and demand changes in talent and operating models, adding risks. Consequently, Jefferies downgraded Infosys, HCL Tech, and Mphasis to ‘Hold’, and LTIMindtree, Tata Consultancy Services, and Hexaware Technologies to ‘Underperform’, leading to a fall in their share prices.
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HCL Tech, Infosys, TCS, LTIM: Jefferies cuts targets for Indian IT stocks by up to 33%
Jefferies has significantly cut its target prices for Indian IT stocks by up to 33%, citing AI’s potential to shift the IT business mix towards consulting and implementation while shrinking managed services. This shift is expected to increase cyclicality and demand changes in talent and operating models, adding risks. Consequently, Jefferies downgraded Infosys, HCL Tech, and Mphasis to ‘Hold’, and LTIMindtree, Tata Consultancy Services, and Hexaware Technologies to ‘Underperform’, leading to a fall in their share prices.