MUMBAI, India – Shares of Infosys and Tata Consultancy Services (TCS) traded higher on Tuesday (November 21) after brokerage Bernstein gave contrasting target prices for the IT companies’ stocks.
Bernstein’s Target Prices
The brokerage has maintained an ‘outperform’ rating on Infosys, raising its target share price to Rs 1,600 from Rs 1,580. However, Bernstein has cut the target price for TCS to Rs 3,800 from Rs 3,940, while maintaining an ‘outperform’ rating.
Infosys’ Performance Bonus and TCS’ Deal with ASX
Infosys on Monday reportedly said that it would give quarterly performance bonus to its employees in November, averaging a payout of 80 per cent. Employees at position Level 6 (PL6-manager) and those at below band will be eligible for the bonus.
TCS on the other hand, announced on Monday that it had signed an agreement with Australia’s primary securities exchange, ASX, to provide a next-generation clearing and settlement platform to service the Australian market.
“ASX will implement TCS’ flagship product TCS BaNCS for Market Infrastructure to enable the transformation,” TCS said in a statement.
Analysts believe that the contrasting target prices from Bernstein reflect the brokerage’s differing views on the growth prospects of the two IT companies. Bernstein is more bullish on Infosys, while it is more cautious on TCS.
“Infosys has been a consistent outperformer in the IT sector, and we believe that its strong growth prospects will continue to drive its share price higher,” said an analyst at Bernstein. However, the analyst added that TCS is facing some challenges in the near term, which could weigh on its share price in the coming months.
Despite the contrasting target prices from Bernstein, both Infosys and TCS are expected to continue to be solid performers in the Indian IT sector. The two companies have a strong track record of growth and are well-positioned to benefit from the continued demand for IT services in India and around the world.