Coforge's stock has experienced a significant increase of around 22% this year, surpassing the Nifty's 12% return. This strong performance in Q2 has led analysts to identify Coforge as a leading midcap IT stock.
Several brokerages have raised their price targets for the company after its impressive earnings report for the quarter ending September 30, 2024. Nomura, for example, maintains a 'buy' rating on Coforge and has set a target price of Rs 8,480 per share. They expect double-digit revenue growth for FY25 and have adjusted their FY25-27 EPS estimates upward. HSBC has also increased its target price for Coforge to Rs 8,200 per share, reaffirming a 'buy' recommendation.
The positive results from both Coforge and Cigniti indicate a favorable revenue and margin outlook for the sector.