Goldman Sachs cuts target prices on IT stocks amid US macroeconomic uncertainty

Global brokerage firm Goldman Sachs Has reduced its price goals on Indian IT stock 3% to 32%, citing low revenue growth forecasts Macroeconomic uncertainty In America.
According to an ET report, Brokerage stated that the United States accounts for about 60% of India’s IT revenue, and the world’s largest economy led to a reduction in targeted prices, with the increasing possibility of recession due to the decline in the facilitated domestic product forecast as well as a signature indication.
Goldmann ‘neutral’ Ltimindtree with ‘Buy’, stating that “we reduce ltimindtree, which see the company’s high discretionary risk versus peers, premium assessment vs. sector and more balanced risk-enhance and more balanced risk-widelines. According to brokerage, the company’s elevated performance for discretionary expenses and premium valuation was an important factor in downgrade.
On the Tata Consultancy Services (TCS), Goldman Sachs reported that the company is better than “its peers” due to its diverse revenue base, potential advantage from seller consolidation, and “appropriate high margin visibility”. TCS is seen as a better position than peers such as Wipro and Tech Mahindra, which is likely to face the challenges of development and more important negative effects than sellers consolidation.
Goldman analysts also highlighted further challenges: “Recovery in discretionary expenses, which have been silent for the last two years, may be delayed in potentially translation to make slow decisions, so that enterprises can be stopped to spend it.” Additionally, he warned that prolonged macroeconomic recession may give rise to “project re-scopping or cancellation”, which will increase pressure on the multiples of India’s IT region.
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