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market | IST

Morgan Stanley selective on midcap IT; overweight on Mphasis, Mindtree; here’s why

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Morgan Stanley believes it is time to be more selective on the midcap IT space and expects the revenue beat cycle to continue for stocks like Mphasis and Mindtree.

Morgan Stanley believes it is time to be more selective on the midcap IT space and expects the revenue beat cycle to continue for stocks like Mphasis and Mindtree.
The firm has upgraded both the stocks – Mphasis, from equal weight to overweight raising the target price to Rs 3,150 versus earlier target price of Rs 1,720. On Mindtree, it has raised the target price to Rs 3,450 from Rs 2,800.
At the same time, the firm has downgraded two stocks, Cyient and L&T Infotech on expectations of earnings disappointment and heady valuations.
For Cyient, Morgan Stanley’s new target price is Rs 870 and for L&T Infotech, the new target price is Rs 4,635.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.
To watch other videos in this series, click on the Standout Brokerage Report tab below.