Jefferies Raises Infosys and TCS Target Prices by 14-18%
Jefferies sees further valuation upside in select Indian IT stocks after the sector's October rally, keeping its hold and underperform ratings. Source: Moody's.
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what happened
Jefferies says Infosys and TCS are the only large Indian IT companies with room for further valuation rerating, despite the sector's sharp October gains. The brokerage argues share prices still reflect weak long-term growth expectations, and it named Sagility as the standout among mid-sized firms.
Target prices for Infosys were raised to 1,160 and for TCS to 2,125. The 'hold' rating on Infosys and the 'underperform' rating on TCS were kept. Jefferies warns that risk-reward turns unfavourable above 17-18 times earnings. If growth stops after FY29, price-to-earnings could fall to 12-13 times, while sustained FY21-26 growth would imply 15-22 times for large firms and 22-47 times for mid-sized ones.
why it matters
For markets, this signals that sector valuations hinge on revenue growth expectations and sentiment around global AI spending. Indian IT shares remain sensitive to developments in that area, so a shift in sentiment could quickly change multiples.
tags
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sources
- Jefferies Sees Valuation Upside in Select IT Stocks — Moody's, 22 October 2026 at 04:14 UTC
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