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Coforge Shares Zoom 7% After JPMorgan's Upgrade to 'Overweight'

Shares of Coforge soared after top global brokerages projected double-digit upside while confidence was driven by upbeat FY26 guidance and strong execution momentum

Coforge Share Price
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Shares of Coforge surged as much as 7% on June 10, after global brokerage firm JPMorgan chose the stock as its top pick in the IT sector, assigning it an ‘overweight’ rating.

JPMorgan further expressed confidence over Coforge’s industry-leading growth prospects and margin expansion. Adding to that, the brokerage also noted that the company’s management also remained bullish, giving no warnings of macroeconomic headwinds that have impacted its peers. The company anticipates strong growth momentum in the first half of FY26, with the latter half poised to perform even better even after factoring in the benefits of its recent Sabre deal.

Coforge’s leadership also expects EBIT margins to improve by at least 140 basis points in the ongoing year, going to 14% from the current 12.6% in FY25. That would mean the firm hitting its FY27 margin target a full year ahead of schedule, JPMorgan noted.

Meanwhile, JPMorgan also sees Coforge as a standout among its peers, due to its bold approach to business development. “Instead of waiting for clients to float requests for proposals (RFPs), Coforge actively pursues large-scale deals, showcasing a nimbleness and execution strength that appears to be paying off in a sluggish IT landscape,” JPMorgan Stated.

Factoring in its growth prospects, JPMorgan has set a price target of ₹2,080 for the stock, implying a potential upside of 16% from current levels. On the other hand, Morgan Stanley went a step further and has assigned a price target of Rs 3,500 for the stock, expecting an ever steeper upside potential of 36%.

Buoyed by the solid outlook charted out by institutional players, local investors have also followed suit.

Shares of Coforge have run up over 7% in  the past week. Trading volumes in the counter also surged, cementing its rally. As many as 55 lakh shares of Coforge changed hands thus far, already far higher than the one-month daily traded average of seven lakh shares.

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