Eight IT stocks get price target cuts from CLSA but firm highlights why it remains optimistic
Published on 24/02/2026 08:26 AM
Eight IT stocks get price target cuts from CLSA but firm highlights why it remains optimisticThe Nifty IT index fell 1.4% on Monday, and all stocks on the Nifty IT index are trading with losses between 10% to as high as 22% in just the first two months of the year.By Hormaz Fatakia February 24, 2026, 8:26:49 AM IST (Updated)2 Min ReadBrokerage firm CLSA has cut its price target on eight IT companies, Coforge, HCLTech, Infosys, LTIMindtree, Persistent Systems, TCS, Tech Mahindra & Wipro in its latest note on Tuesday, February 24.
Despite the cut in price targets, CLSA has reiterated its "outperform" rating on most of these names, barring Wipro, where it has a "hold" rating. The "high-conviction outperform" rating comes for stocks like Persistent Systems and Coforge.
StockOld Target (₹)New Target (₹)% ChangeCoforge2,4262,278-6.1HCLTech1,6611,506-9.3Infosys1,7791,653-7.1LTIMindtree7,0676,304-10.8Persistent8,8658,058-9.1TCS3,5933,333-7.2Tech Mahindra1,8101,698-6.2Wipro231218-5.6
CLSA stated that the stock prices could see another 5% to 10% downside for 5% terminal growth in rupee terms. "Assuming 2% rupee depreciation each year, 5% terminal growth implies no market share gains," the note said.
Based on CLSA's multiple channel checks, there is no change to the positioning for IT Services companies in the AI world.
The brokerage also cited positive management commentary from Infosys at its AI investor day, and the organic growth guidance issued by Cognizant, Capgemini, and EPAM being better than 2025, implying that there is a macro upcycle in 2026 still in place.
CEOs of both OpenAI and Anthropic, have flagged the role of the Indian services industry in taking their solutions to the enterprises, CLSA said. However, despite this optimism, the continued de-rating of the sector poses a challenge to the long-term terminal growth, CLSA said.
Among the IT stocks, CLSA prefers Tech Mahindra and Infosys among largecaps, and Persistent Systems and Coforge among the midcaps.
The Nifty IT index fell 1.4% on Monday, and all stocks on the Nifty IT index are trading with losses between 10% to as high as 22% in just the first two months of the year.Continue ReadingFirst Published: Feb 24, 2026 8:20 AM ISTTagsCoforgeHCL Tech sharesInfosys share priceIT stocksLTIMindtreeNifty ITPersistent SystemsTCS share priceTech Mahindra Share PriceWipro share price