MUMBAI - Morgan Stanley (NYSE:MS) has assigned an 'overweight' rating to IT services firm Coforge and established a target price of ₹7,200. This valuation comes in the wake of a 3% increase in Coforge's share price today, reaching ₹6,338.50. The financial institution's outlook is buoyed by the company's strong performance indicators and future growth potential.
Coforge, which has communicated its aim for a revenue growth of 13-16% for the fiscal year 2024 (FY24), is also optimistic about achieving higher margins in the upcoming third quarter. Morgan Stanley's analysis forecasts a compound annual growth rate (CAGR) in revenue of approximately 14.7% through FY26. This projection is underpinned by Coforge's robust revenue growth trajectory and its solid free cash flow conversion, signaling a positive outlook for the company's financial health and operational efficiency.
Investors have responded favorably to the company's strategic direction and growth targets, as reflected in the recent uptick in the share price. With these developments, Coforge is poised to maintain its momentum in the competitive IT services landscape.
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