{"id":269580,"date":"2025-03-29T11:37:19","date_gmt":"2025-03-29T11:37:19","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/29\/goldman-sachs-cuts-target-prices-on-it-stocks-amid-us-macroeconomic-uncertainty-the-times-of-india\/"},"modified":"2025-03-29T11:37:20","modified_gmt":"2025-03-29T11:37:20","slug":"goldman-sachs-cuts-target-prices-on-it-stocks-amid-us-macroeconomic-uncertainty-the-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/29\/goldman-sachs-cuts-target-prices-on-it-stocks-amid-us-macroeconomic-uncertainty-the-times-of-india\/","title":{"rendered":"Goldman Sachs cuts target prices on IT stocks amid US macroeconomic uncertainty – The Times of India"},"content":{"rendered":"
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Global brokerage firm Goldman Sachs has reduced its price targets on Indian IT stocks by 3% to 32%, citing lower revenue growth forecasts driven by macroeconomic uncertainty in the US.
According to an ET report, the brokerage noted that the US accounts for around 60% of India\u2019s IT revenues, and the downgrade in GDP forecasts for the world\u2019s largest economy, along with the increased possibility of a recession<\/a> caused by tariffs and Accenture\u2019s indication of heightened uncertainty, led to the cut in target prices.
Goldman downgraded LTIMindtree to \u2018Neutral\u2019 from \u2018Buy,\u2019 stating that \u201cwe downgrade LTIMindtree given reduced near-term growth and margin visibility due to the company\u2019s higher discretionary exposure vs peers, premium valuations vs sector and a more balanced risk-reward.\u201d The company\u2019s elevated exposure to discretionary spending and premium valuations were key factors in the downgrade, according to the brokerage.
On Tata Consultancy Services (TCS), Goldman Sachs pointed out that the company is \u201cpoised better than its peers\u201d due to its diversified revenue base, potential benefits from vendor consolidation, and \u201creasonably high margin visibility.\u201d TCS is seen as better positioned compared to peers such as Wipro and Tech Mahindra, which are likely to face a more significant negative impact from growth challenges and vendor consolidation.
Goldman analysts also highlighted the challenges ahead: \u201cThe recovery in discretionary spending, which has remained muted for the last two years, could be delayed further on account of slower decision-making potentially translating into pauses\/deferral of IT spending by enterprises.\u201d Additionally, they warned that a prolonged macroeconomic downturn could lead to \u201cproject re-scoping or cancellations,\u201d which would further put pressure on India\u2019s IT sector multiples.
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.<\/span><\/div>\n<\/div>\n