CLSA lowers price targets for IT firms, but not TCS
Business
CLSA just lowered its price targets for eight big Indian IT companies, including TCS, as the sector has taken a hit—stocks on the Nifty IT index are down 10-22% in early 2026.
Still, they're keeping an "Outperform" rating on TCS.
SaaS and enterprise AI are keeping TCS afloat
TCS is holding up thanks to its push into SaaS and enterprise AI, especially through its partnership with ServiceNow.
While CLSA warns there could be another 5-10% dip from here due to industry risks, they see these tech trends as strong growth drivers for TCS.
Tech Mahindra, Infosys among large-cap favorites
Among large-cap stocks, Tech Mahindra and Infosys are also favorites.
For mid-caps, Persistent Systems and Coforge get top marks—CLSA thinks these firms are best placed to ride out the current IT market challenges.