Updated Jan 1, 2025 13:31 IST
IT Stocks To BUY: TCS, HCL Tech, Persistent Systems get OUTPERFORM rating (Pic: ET NOW)
Macquarie said that it believe the ongoing changes and uncertainties in the US H1-B visa policies could open new avenues of opportunities for Indian IT companies even though they have small share in overall visa sponsorships.
The brokerage has positioned TCS and HCL Technologies as key beneficiaries. Notably, TCS accounts for 1 per cent of the total fiscal 2024 H1-B visa sponsorships, HCL Tech accounts for 0.9 per cent.
Macquarie in its report also flagged concerns over proposals seeking a flat wage floor. It called the proposals impractical due to regional cost-of-living differences across the US.
Macquarie in its report noted that the current correction in the market presents a good opportunities to BUY Indian IT companies’ shares. It said that TCS, HCL Tech and Persistent Systems are its top picks from the IT sector. Let’s take a look at the target price of TCS, HCL Tech and Persistent Systems shares set by Macquarie.
The brokerage has set a target price of Rs 5,710 for TCS shares, implying an upside of nearly Rs 1,600. TCS shares currently trade at Rs 4,115 apiece on NSE.
On HCL Tech, the brokerage has set a target price of Rs 2,020. It means that HCL Tech share can yield a moderate return of up to 6 per cent from the current price of Rs 1,919.
On Persistent Systems, Macquarie has set a target price of Rs 6,759. This translates into an upside of Rs 360 from the current market price of Rs 6399.
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