TCS Share Price Today: Citi has retained its Sell recommendation on Tata Consultancy Services while cutting its target price to Rs 1,875 from Rs 2,040, citing continued challenges in the IT services sector and a recent sector rerating.
Citi analyst Surendra Goyal has marginally revised their FY27E-FY29E estimates for TCS by around 0-1% to incorporate changes in the exchange rate and minor tweaks to business and operational parameters.
The brokerage, however, lowered its target multiple for TCS to 12x from 13x. Citi said the reduction factors in the continued challenges facing the sector as well as the recent rerating seen across the IT sector.
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Following the revision, Citi's target price implies a 10% downside from TCS' September 25 closing price of Rs 2,083.95. The brokerage estimates a dividend yield of 5.7%, taking the expected total return to -4.4%.
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TCS shares settled 0.33% higher at Rs 2,083.95 on Friday, while the BSE Sensex gained 0.43% to close at 73,895.74.
Citi's estimates incorporate only marginal changes to its earnings outlook, with the more major adjustment coming from the valuation multiple applied to the stock. The brokerage has therefore maintained its ‘Sell' rating despite the modest changes to its FY27E-FY29E estimates.
TCS-Jaguar Racing Partnership
Separately, TCS and Jaguar TCS Racing last week announced a multi-year extension of their title partnership, with TCS also becoming the team's Official AI Partner as the ABB FIA Formula E World Championship enters the GEN4 era.
The expanded partnership will explore the use of artificial intelligence across racing operations and engineering, while generating insights for next-generation Jaguar electric vehicles.
The partnership builds on five years of collaboration between TCS and Jaguar TCS Racing, during which the team secured the 2024 and 2026 Formula E Teams' World Championships.
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