HSBC, Nomura, Jefferies, all have a “buy” recommendation on the stock and see an upside potential of up to 43% on the stock. UBS has retained its “neutral” rating.
HSBC
The brokerage has a “buy” rating on Coforge with a price target of ₹1,710 per share.
It said the company believes AI will be a net tailwind for its business as it has set the estimated revenue target for the financial year 2030 as $5 billion, inclusive of a large merger and acquisition.
Coforge’s management, at its investor day, stated that it is committed to the FY27 estimated EBIT margin of 16.5% and free cash flow (FCF) / profit after tax of over 100% with growth picking up from the second quarter of this fiscal.
Nomura
Nomura has a “buy” rating on Coforge with a price target of ₹2,100 per share.
It said Coforge is eyeing $5 billion revenue by FY30 with significant tailwinds from AI.
Coforge management said the company continues to work on its playbook of scaling accounts, scaling its big bets, partner-led growth and acquisitions to double its revenue by FY30.
Jefferies
The brokerage too has a “buy” rating on the stock with a price target of ₹1,860 per share.
It reiterated that Coforge has highlighted its $5 billion revenue aspiration (19% compound annual growth rate; 15% organic), led by account mining, AI-led services and ecosystem partnership, with selective M&A support.
Coforge is pivoting to an AI-native, platform-driven model, combining domain expertise with reusable assets, Jefferies said, adding that the move to FDE-led, mod squad delivery is improving productivity and enabling larger, outcome-based deals, supporting sustained profitable growth.
UBS
UBS has a “neutral” rating on Coforge with a price target of ₹1,505 apiece.
The brokerage said Cofoge’s management highlighted non-linear growth in enterprise AI spend and its impact on services demand. It also expects post AI outsourced IT spend to grow between 40% – 50% over the next three to five years, which will be a key tailwind for Coforge’s growth .
Coforge expects verticals such as healthcare and hitech and governments outside India to grow between 17% – 18% followed by insurance and travel at 14% and BFSI at 12%, UBS said.
The company’s management is also looking at margin expansion led by operational discipline. The capital allocation is to prioritise growth, UBS added.
Of the 39 analysts who have coverage on the Coforge stock, 31 have a “buy” rating, five have a “hold” rating and three have a “sell” rating.
Shares of Coforge have given up gains of as much as 3% on Wednesday and are now trading with losses of 0.3% at ₹1,461.5. The stock is up 8.5% over the last one month, but is still down 12% so far for the year.
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