Archive · 29 Jul 2026
Brokerages Raise Target Price for Coforge
Coforge, an IT services company, had a really good June quarter.
They made more money than expected and won lots of new orders.
Three big companies that give advice on stocks, Jefferies, Nomura, and Nuvama, think Coforge is doing so well that they raised the price they think the stock is worth.
They like that Coforge is doing well on its own and that buying another company, Encora, is helping them grow even more.
They think Coforge will keep doing well and making more money in the next few years.
Coforge reported 22.3% quarter-on-quarter revenue growth in June 2026.
Brokerages Jefferies, Nomura, and Nuvama raised their target prices for Coforge.
Strong execution, a healthy order book, and benefits from the Encora acquisition drove the positive outlook.
Encora's profitability exceeded expectations, contributing significantly to growth and margins.
Analysts expect Coforge to deliver strong organic growth and improved profitability over FY27-29.
- Who
- Coforge, Jefferies, Nomura, Nuvama
- What
- Brokerages raised target price for Coforge due to strong June quarter performance
- When
- June 2026
- Where
- Global IT services sector
- Why
- Strong execution, healthy order book, and benefits from Encora acquisition
Positive Outlook
Cautious Optimism
Growth Trajectory
Positive Outlook
Strong deal wins and a robust order pipeline ensure mid-teens organic growth over FY27-29.
Cautious Optimism
While growth is strong, it is important to monitor the integration of Encora and its impact on margins.
Margin Expansion
Positive Outlook
Encora's profitability exceeds expectations, and integration synergies are progressing faster than anticipated.
Cautious Optimism
Margins are improving, but there is still scope for synergy extraction and leverage from revenue growth.
Earnings Estimates
Positive Outlook
Earnings estimates have been raised by 3-7%, with expectations of 23% recurring EPS CAGR over FY27-FY29.
Cautious Optimism
While earnings estimates have been raised, it is crucial to watch the execution of the order book and deal wins.
- Company
- Coforge
- Quarter
- June 2026
- Revenue Growth
- 22.3% quarter-on-quarter
- Order Book
- $2.2 billion
- Margins
- Exceeded expectations
- Brokerages
- Jefferies, Nomura, Nuvama
- Target Price
- Rs 2,040 (Jefferies), Rs 1,860 (Nomura), Rs 2,350 (Nuvama)
- Encora Acquisition
- Contributed significantly to growth and margins