TCS stock falls over 3 per cent, brokers cut estimates

Tata Consultancy Services (TCS) shares fell 3.1 per cent on Monday, marking their lowest intra-day level since July 17, after the company said last week that seasonal trends will impact Q3 revenue.

Shares of the company were trading at Rs 2,380 on the Bombay Stock Exchange and Rs 2,375.55 on the National Stock Exchange in late morning trade.

 

Meanwhile, brokers cut their estimates for the stock.

Investment bank Jefferies has cut the stock's target to Rs 2,770 from Rs 2,970, but maintained a buy rating on the shares.

The bank has also lowered FY16/FY17 EPS estimates for TCS by 2.1 per cent on cross currency impact. "Cross currency is likely to have a 220 bps (basis points) negative impact on the Q3 USD reported growth," Jefferies said in a note.

It also lowered its target multiple to 20x from 21x to incorporate the management's weak commentary.

Global investment major Barclays too cut TCS' EPS estimates for FY15/FY16 by 2 to 3 per cent.

(Reuters)