UBS Upgrades Three Indian IT Stocks, Downgrades Two

UBS studied several Indian technology companies and changed its opinions about their shares.

It upgraded Tech Mahindra, Coforge and Mphasis to Buy.

This means UBS believes these three companies may perform relatively well.

Coforge had the largest estimated upside, at about 27%.

Mphasis and Tech Mahindra also had positive estimated upsides.

UBS moved HCLTech and Persistent to Neutral instead of Buy.

HCLTech may have difficulty reaching the stronger end of its growth guidance soon.

Persistent is performing well, but its planned Nagarro acquisition could bring more debt and integration challenges.

UBS said investors should remain selective because AI opportunities have not yet created broad revenue growth across the sector.