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Coforge Shares Soar on Upbeat Analyst Ratings
30 Sep, 2025
Summary
- CLSA and Morgan Stanley maintain positive views on Coforge
- CLSA forecasts strong revenue, EBIT, and EPS growth for Coforge
- Morgan Stanley expects Coforge's share price to outperform the market
On September 30, 2025, shares of Coforge Limited, an Indian IT services company, rose nearly 3% to trade at ₹1,583.90 on the National Stock Exchange (NSE). This surge in the stock price came after two global brokerage firms, CLSA and Morgan Stanley, maintained positive views on the company.
CLSA, a leading investment firm, initiated an "outperform" rating on Coforge with a target price of ₹2,346. The brokerage highlighted the company's strong execution, incentivized leadership, and domain expertise in the financial services and travel verticals, which contribute two-thirds of Coforge's revenue. CLSA also forecasted impressive FY26-28 revenue, EBIT, and EPS compound annual growth rates (CAGRs) of 15%, 16%, and 22%, respectively, citing Coforge's strong order book and consulting-driven approach.
Meanwhile, Morgan Stanley, another prominent investment bank, maintained its "overweight" rating on Coforge with a target price of ₹1,880. The firm noted that Coforge's share price is expected to outperform the country's benchmark index over the next 60 days. Morgan Stanley also pointed to the company's steady revenue growth, margin resilience in the second quarter and second half of the fiscal year, and limited downside risks to consensus earnings per share (EPS) estimates. Additionally, the firm highlighted the potential for improved free cash flow margins and re-rating from current levels.
