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Investing.com - CLSA initiated coverage on Coforge Ltd (NSE:COFORGE) with an Outperform rating and a price target of INR2,346.00, representing a potential 52% upside from current levels.
The research firm highlighted Coforge’s position among India’s top 10 IT service companies by revenue, with two-thirds of its business coming from financial services and travel verticals. CLSA noted management’s strong execution in building domain expertise and maintaining a consulting mindset.
CLSA forecasts FY26-28 compound annual growth rates of 15% for revenue, 16% for EBIT, and 22% for earnings per share. The price target is based on a price-to-earnings growth ratio of 2.0, in line with Coforge’s seven-year average.
The valuation implies approximately 40x price-to-earnings multiple, applied to the analyst’s projected quarterly EPS of Rs58.66. CLSA’s target represents significant upside potential from current share prices.
The research firm also noted Coforge’s high ESG score compared to the Indian IT sector average, attributing this to its largely independent board and employee-friendly HR policies that have resulted in industry-low attrition levels.
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