CLSA Prefers IT Firms Over Large Caps After Cognizant Cut

CLSA is a brokerage that looks at how well companies do.

They think two smaller Indian IT companies, Coforge and LTIMindtree, are better bets than the big ones.

Cognizant, a big IT firm, lowered its future earnings forecast because the economy is uncertain.

CLSA says the banking and insurance part of the business is growing fast, which helps smaller firms.

They also think that new AI tools won't solve price problems soon, so they prefer the smaller companies.

They set higher target prices for Coforge and LTIMindtree, meaning they expect their stocks to rise.

The article explains why CLSA likes these companies more than the larger ones.