Morgan Stanley has increased the target prices of certain information technology (IT) stocks by as much as 29 per cent, anticipating an improvement in earnings in the near future.
Within the IT and engineering research and development (ER&D) services sector, it is now more optimistic about growth and margin estimates for 2024-25 (FY25).
“Strong outlook on FY25 revenue growth, improving margins, and double-digit EPS growth should keep valuations afl oat,” said Morgan Stanleys analysts Gaurav Rateria and Sulabh Govila in a client note.