IT crash ahead? CLSA downgrades TCS, Infosys, Wipro, other stocks; revises target prices. Here's why

IT crash ahead? CLSA downgrades TCS, Infosys, Wipro, other stocks; revises target prices. Here's why

CLSA downgraded several large IT stocks and cut their target prices amid continued AI-related concerns, while retaining a bullish view on select mid-tier IT companies. The brokerage said Q1 earnings were mixed across Indian IT and global peers, but expects AI-driven volumes to eventually offset pricing deflation by FY30.

CLSA turns cautious on Indian IT, downgrades TCS, Infosys, Tech Mahindra; prefers mid-tier stocks amid AI shift

CLSA downgraded TCS, Infosys and Tech Mahindra to Hold and Wipro and Mphasis to Underperform, warning that AI-led deflation and macro headwinds could weigh on business. It said mid-tier firms as better placed to navigate the technology transition, retaining bullish calls on Coforge, Persistent Systems, LTIMindtree and Hexaware.