Global brokerage firm Goldman Sachs has downgraded LTIMindtree to ‘Neutral’ and cut its price target to ₹4,500 from ₹6,570 earlier.

The brokerage has maintained its ‘Buy’ rating on TCS but lowered the price target to ₹4,230 from ₹4,550. Similarly, it has kept its ‘Buy’ rating on Infosys while reducing the price target to ₹1,790 from ₹2,100.

Meanwhile, Goldman Sachs has retained its ‘Sell’ rating on Wipro, with a price target of ₹256.

The brokerage has sharply lowered its FY26E revenue growth forecast for India’s IT services sector to 4% year-on-year (constant currency), a 230-basis-point reduction from its previous estimate. This revised forecast is only marginally higher than the 3.5% year-on-year growth expected for FY25E.
Goldman Sachs has attributed the downgrade to macroeconomic uncertainty, particularly in the US.

The foreign brokerage mentioned that its US economists recently downgraded their GDP growth forecast for 2025 to 1.7% from 2.4% at the beginning of the year. Additionally, they have marginally increased the 12-month recession probability to 20% from 15%, citing the negative impact of tariffs.

Another brokerage house UBS expects more upside than downside for Indian IT stocks.

It has a ‘Buy’ rating on TCS, with a price target of ₹4,250. It has also maintained a ‘Buy’ on Infosys, with a price target of ₹2,100. UBS also recommends buying Wipro and HCL Technologies, with price targets at ₹315 and ₹2,030, respectively. However, it has a ‘Sell’ rating on Tech Mahindra, with a price target of ₹1,470.

The brokerage expects consensus earnings cuts of 5-7% but still believes FY26 will be stronger than FY25, implying a potential rebound in sector valuations.

Shares of Indian IT companies have corrected by around 15-20% over the past three months.