Archive · 26 Aug 2026
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.
UBS upgraded Tech Mahindra, Coforge and Mphasis to Buy, while moving HCLTech and Persistent to Neutral.
Coforge has the highest recalculated upside at 27.1%, followed by Mphasis at 22.6% and Tech Mahindra at 17.8%.
UBS cited stronger execution, order wins, deal ramps and improving growth visibility for its upgrades.
The brokerage said HCLTech faces near-term guidance risks despite a stronger medium-term outlook supported by a $1.1 billion deal.
Persistent’s proposed Nagarro acquisition, higher debt and integration uncertainty contributed to its downgrade to Neutral.
- Who
- UBS and the Indian IT services companies Tech Mahindra, Coforge, Mphasis, HCLTech and Persistent.
- What
- UBS upgraded three companies to Buy and downgraded two to Neutral, while revising some target prices.
- When
- In UBS’s latest Indian IT services report; the articles do not specify a publication date.
- Where
- India’s IT services sector.
- Why
- UBS cited differences in growth visibility, execution, margins, order wins and company-specific risks, including acquisitions.
- Upgraded to Buy
- Tech Mahindra, Coforge and Mphasis.
- Downgraded to Neutral
- HCLTech and Persistent.
- Highest estimated upside
- Coforge: 27.1%, based on UBS’s target price of Rs2,400.
- Mphasis target and upside
- Rs2,980 target price and 22.6% recalculated upside.
- Tech Mahindra target and upside
- Rs1,865 target price and 17.8% recalculated upside.
- HCLTech target and upside
- Rs1,415 target price and 8.5% recalculated upside.
- Persistent target and upside
- Rs6,250 target price and 10.6% recalculated upside.