'Share price will...' - TCS stock gets new price target from Morgan Stanley

TCS Share Price Target 2026 by Morgan Stanley: Shares of IT major Tata Consultancy Services Ltd (TCS) have declined in Wednesday’s trade, trading 1.69% lower at Rs 2566.50 in early trade. Amid this, Morgan Stanley issued a latest note dated April 22, maintaining an 'Overweight' rating with an 'In-Line' industry view. The global brokerage firm, has assigned an 80 per cent plus, or ‘highly likely’, probability to this scenario playing out.

Outlining a positive near-term trajectory, Morgan Stanley said, "We believe the share price will rise relative to the country index over the next 60 days." 

According to the brokerage note, the IT bellwether is expected to deliver approximately 4 per cent revenue growth in F27e. Morgan Stanley highlighted that this projection sits firmly "in line with to better than what we see for many large-cap peers." 

While TCS faced significant underperformance in revenue growth during F26, Morgan Stanley noted that this is already priced into the stock. This past underperformance is reflected in the company's P/E multiple, which is trading at a significant discount compared to its industry rivals, it said. 

However, Morgan Stanley expects this valuation gap to correct soon. Pointing to the recent release of some large-cap results, the brokerage observed that TCS appears better positioned regarding its F27 revenue growth estimates so far. 

Consequently, Morgan Stanley sees the stock's P/E multiple, at a "discount of 19% to peers such as HCLT" narrowing in the coming quarters.

TCS share price target

The foreign brokerage has set a price target of Rs 2,880 on TCS stock. Considering the current market level of Rs 2566.50, this target implies an upside of over 12 per cent for the stock.

Meanwhile, on April 9, TCS reported a 12.12 per cent year-on-year (YoY) rise in its consolidated net profit for the fourth quarter of the current fiscal. During the quarter under review, the company's profit came in at Rs 13,784 crore, up from Rs 12,293 crore recorded in the year-ago period.