Jefferies is bearish TCS, Wipro, 6 other IT stocks ahead of Q2 results. How many do you own?

Jefferies expects revenues across its IT coverage universe to grow 1.7% QoQ in constant currency (cc) during 2QFY27, translating to 4.0% YoY growth, largely driven by acquisitions. On an organic basis, growth is expected to be much slower at 0.8% QoQ and 1.9% YoY. Mid-sized IT companies are expected to grow 3.5% QoQ, while large IT firms may see growth of just 0.5% QoQ, making 2QFY27 the weakest second quarter for large IT companies in the past three years. Here are 9 stocks analysts are bearish on.

Jefferies has a Hold rating on Infosys, with a target price of Rs 1,020 versus the current market price of Rs 1,015, implying 0% upside and a 5% dividend yield.

Jefferies has an Underperform rating on HCL Tech, with a target price of Rs 1,070 versus the current market price of Rs 1,222, implying 12% downside and a 5% dividend yield.

Jefferies has an Underperform rating on TCS, with a target price of Rs 1,800 versus the current market price of Rs 2,032, implying 11% downside and a 6% dividend yield.

Jefferies has an Underperform rating on Wipro, with a target price of Rs 150 versus the current market price of Rs 157, implying 4% downside and a 5% dividend yield.

Jefferies has an Underperform rating on Tech Mahindra, with a target price of Rs 1,260 versus the current market price of Rs 1,511, implying 17% downside and a 4% dividend yield.

Jefferies has an Underperform rating on LTIMindtree, with a target price of Rs 3,360 versus the current market price of Rs 3,936, implying 15% downside and a 2% dividend yield.

Jefferies has a Hold rating on IKS, with a target price of Rs 1,900 versus the current market price of Rs 1,779, implying 7% upside and no dividend yield.

Jefferies has a Hold rating on Mphasis, with a target price of Rs 2,350 versus the current market price of Rs 2,154, implying 9% upside and a 3% dividend yield.

Jefferies has a Hold rating on Hexaware, with a target price of Rs 500 versus the current market price of Rs 482, implying 4% upside and a 4% dividend yield.
Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.