Tata Consultancy Services slumped 3.9 per cent on Monday, its lowest intraday level since July 17. The company had said on Friday that seasonal trends will impact its Q3 revenue.
Jefferies cut the target for TCS to Rs 2,770 from Rs 2,970 and maintained the buy rating. The investment bank lowered company's FY16/FY17 EPS estimate by 2.1 per cent on cross currency impact.
The bank also said in its note that cross currency is likely to have a 220 bps negative impact on the Q3 dollar reported growth.
Jefferies lowered its target multiple to 20x from 21x to incorporate management's weak commentary.
Barclays cut the EPS estimates for FY15/FY16 by 2 to 3 per cent.
($1 = Rs 62.2000)
Copyright: Thomson Reuters 2014
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