Most analysts who have coverage on Tata Group technology services giant Tata Consultancy Services Ltd. (TCS) have maintained their bullish recommendations on the stock with minor tweaks in their price target on the lower side.

TCS reported its September quarter results on Thursday evening which were a miss on the margin front. Revenue in both US dollar and rupee terms were in-line with expectations but most other parameters were a marginal miss.

Yet, 30 out of the 47 analysts who have coverage on TCS have maintained their “buy” recommendation on the stock, 10 of them have a “hold” rating, while seven of them have a “sell” call on the stock.

Brokerage firm Jefferies maintained its “buy” rating on the stock with a price target of ₹4,735, calling the quarter a miss on estimates due to North America and margin headwinds.

Jefferies believes that a ramp down of the BSNL deal may provide TCS the scope to improve margins.

However, it has cut its estimates by 1% to 2% and is expecting TCS’ Earnings Per Share (EPS) to grow at a Compounded Annual Growth Rate (CAGR) of 11% over financial year 2025 and 2027.

HSBC finds TCS the best managed company in the sector and hence prefers the stock over its peers. It said that the results reflect a “painfully” slow demand recovery even as the company highlighted some client specific issues.

But HSBC has maintained its “buy” recommendation on TCS with a price target of ₹4,540.

JPMorgan called the results a “rare miss” but a quarter which had some silver linings. For the second half of the current financial year, JPMorgan expects growth to broadly recover from financial services and tech with BSNL contract unwinding will help margins head back to traditional levels.

The brokerage said that it will use any sharp correction in TCS to add to positions while maintaining its “overweight” stance and marginally cutting its price target to ₹5,100 from ₹5,200 earlier.

Bernstein expects the near-term to be weak for TCS but expects demand to pick up in the coming quarters as macros improve, BFSI segment continues to recover and with a better order book.

As a result, it has maintained its “outperform” rating on TCS with a price target of ₹4,680.

Motilal Oswal expects the BSNL ramp up to continue fueling growth for TCS in the current financial year and margins to improve sequentially as wage hikes are now behind.

The brokerage has a “buy” recommendation with a price target of ₹5,400, which is among the highest for the company on the street.

Nomura though remains “neutral” on TCS with a price target of ₹4,150, calling the margin miss “significant.” It has cut its financial year 2025 and 2026 EPS estimates by 1.6% and 2.4% respectively.

Citi has a “sell” recommendation on TCS and continues to prefer Infosys within the IT sector. The brokerage has a “sell” rating with a price target of ₹3,935 and a lower financial year 2026 EPS estimate by 2%.

Shares of TCS ended 0.6% lower on Thursday at ₹4,227. The stock is up 11% so far in 2024.