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Investing.com - Jefferies has upgraded HCL Technologies (NSE:HCLT) stock rating from Hold to Buy while significantly raising its price target to INR1,850.00 from INR1,490.00.
The upgrade follows HCL Technologies’ first-quarter results, which showed revenues ahead of expectations, though profits missed estimates due to a sharp margin decline.
HCL Technologies has raised its fiscal year 2026 growth guidance to 3-5%, which Jefferies notes is the highest among the top five Indian IT firms, though the company also cut its margin guidance by 100 basis points to 17-18% due to accelerated investments in growth.
Jefferies has adjusted its earnings per share estimates downward by 0-2% to reflect these changes, but still expects a 10% EPS compound annual growth rate over fiscal years 2026-2028.
The investment firm believes HCL Technologies’ investments should support superior growth and premium valuation, which forms the basis for the upgrade to Buy status.
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