Zomato, TCS, Infosys, Coforge: Bernstein shares stock price targets

Bernstein in its latest note on technology, media & internet sector recommended stock investors to bet on the winners of last year, as it sees earnings upgrade cycle, strong US macros and recovery in Gen AI spends ahead.

Bernstein prefers what it calls the best-in-class largecaps such as Infosys Ltd and Tata Consultancy Services (TCS). It also added 'growthier' midcaps such as Persistent Systems Ltd and Coforge Ltd to its preferred list. Within internet, it believes quick commerce to continue leapfrog other channels with growth led by new categories and tier 2 expansion, with Zomato being the biggest beneficiary.

"We expect Infosys to deliver growth leadership (10% FY25-27) led by strengths in BFSI & the US geography. TCS remains our 2nd top pick in large cap IT services. We add Coforge (with Persistent) in our list of SMID IT driven by growth outperformance (18-20 per cent FY25-27) Zomato is our Top internet pick & as the beneficiary from Quick commerce (100 per cent-plus YoY). We prefer Bharti Airtel as one of the two long-term winners in telecom and expect near-term tariff hikes & continued consolidation," it said.

Here are Bernstein's preferred 2025 picks:

Infosys | Outperform | Target price: Rs 2,350
Calling it a growth champion, Bernstein said Infosys margins have room to improve, thanks to a strong positioning in cloud & digital services and a strong deal pipeline. The IT firm is seen as beneficiary of spending improvement in the US, and bank spends. Bernstein estimates Infosys' FY25-27 growth rate of 10 per cent with EPS growth of 14 per cent, compounded annually. It continues to value Infosys at a multiple of 27 times.

TCS | Outperform | Target price: Rs 4,820

Calling TCS a margin champion, Bernstein said the IT major's deal wins are healthy. The brokerage said TCS has best-in-class execution capabilities and industry domain knowledge. It pegged FY25-27 TCS growth rate of 9.5 per cent with EPS growth rate of 13 per cent, compounded annually.

"We continue to value TCS at a multiple of 27.5 times and rollover to LTM Dec’26 EPS," Bernstein said.

Persistent Systems Ltd | outperform | Target price: Rs 7,280
Persistent Systems has leadership in software product engineering (45 per cent of revenue) and technology-led offering (cloud, AI), a strong management team and deep client base, Bernstein said. The IT firm has ability to win cost take out deals, Bernstein added.

Persistent Systems has delivered fastest growing IT Services revenue over the last three years (up 30 per cent CAGR). Margins have expanded from 12 per cent in FY21 to 14.5 per cent in FY24. "We expect Persistent to growth at a CAGR of 19 per cent over FY25E-FY27E and EPS CAGR of 27 per cent for FY25E-27E. We now value Persistent at a multiple of 52.5 times (earlier 50 times) and rollover to LTM Dec’26 EPS," Bernstein said.

Coforge| Outperform | Target price: Rs 11,280

Bernstein said Coforge has strong capabilities in BFSI (50 per cent of revenues) across insurance platform. It is well-diversified across banks, insurance and travel and is winning large deals.

"We expect Coforge to meet its revenue target of $2 billion by FY27. We increase our consolidated FY25/26 EPS by 4.9 per cent/11 per cent. We now value Coforge at 43 times NTM P/E multiple (earlier 32 times) and rollover to LTM Dec’26 EPS," it said.

Zomato | outperform | Target price: Rs 335
Bernstein said Zomato has a leadership positioning in food delivery & quick commerce. Zomato has seen strong user acquisitions and expanding total addressable market through Dine Out & other growth options.

Bharti Airtel| Outperform | Target price: Rs 1,770
Bharti Airtel is seen as a beneficiary of the telecom repair cycle. It has the leading average revenue per user (ARPU) growth and the telecom opeartor is improving cash flow. Growth opportunities are seen in enterprise and fiber and 5G rollout.

"We update our EPS estimates by -4.6 per cent/-1.4 epr cent to account for increased subscriber churn post tariff hikes. We rollover to LTM Sep’26 and continue to value the India mobile services business at 11.5 times EV/Ebitda," Bernstein said.