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HCL Tech Brokerage Reports: Nomura, HSBC And CLSA Release New Targets
- •Nomura has maintained a Buy rating on HCL Tech with a target price of 1,330 rupees per share.
- •HSBC has given a Hold rating with a target of 1,225 rupees, citing concerns over higher valuations compared to peers.
- •CLSA has also maintained a Hold rating with a target of 1,094 rupees while praising its AI strategy and strong order book.
Key Questions Answered
Following HCL Technologies' second-quarter results, Nomura maintained a 'Buy' rating with a target of ₹1,330 per share. Meanwhile, HSBC issued a 'Hold' rating with a target of ₹1,225, and CLSA also gave a 'Hold' rating with a target price of ₹1,094.
Nomura increased its Earnings Per Share (EPS) estimates for FY2027 and FY2028 by about 2-3% due to strong performance in the services business and growing AI revenue. Similarly, CLSA raised its FY2027 EPS estimate by 2% while noting that EBIT and EPS came in 4% and 6% above estimates.
HSBC kept a 'Hold' rating because it believes there is no clarity on how long the demand recovery will sustain and considers the stock's higher valuation difficult to justify. CLSA maintained a 'Hold' rating because its constant currency revenue growth estimate stands at 3%, near the lower end of the guidance range.
