The foreign brokerage started coverage on the counter with a ‘Buy’ rating and a price target of ₹5,000 per share, implying a potential upside of 14% from current levels.
The brokerage sees Netweb as one of the key beneficiaries of India’s expanding artificial intelligence (AI) infrastructure buildout.
BofA said the company has built a strong competitive advantage through its 15-year partnership with NVIDIA, expertise in supercomputing, and long-standing relationships with key government customers.
Netweb has also steadily expanded its presence in India’s supercomputing market, increasing its market share from 2% in FY20 to 9% in FY26, according to the brokerage.
BofA expects the company to benefit from operating leverage as revenue scales up, allowing it to remain competitive on pricing despite a high-inflation environment while maintaining broadly stable profitability.
The brokerage forecasts revenue to grow at a CAGR of 40% between FY26 and FY29.
Netweb Technologies shares were trading 0.3% higher at ₹4,413.20. The stock has rallied over 40% so far this year.
