Coforge Shares Rally 6% as JPMorgan Names It Top IT Pick; 16% Upside Seen
June 10, 2025 – Shares of Coforge Ltd. surged by as much as 6% in Tuesday’s trade after global brokerage firm JPMorgan assigned an ‘Overweight’ rating to the stock, calling it their top pick in the Indian IT sector. The firm set a price target of ₹2,080, indicating a potential upside of 16% from current levels.
Why JPMorgan Is Bullish on Coforge
JPMorgan’s bullish stance is driven by Coforge’s proactive approach to business development, solid FY26 guidance, and margin improvement expectations. While several IT peers are waiting for a rebound in discretionary spending, Coforge is taking a different route—by aggressively pursuing existing IT budgets through superior execution and client engagement.
The brokerage highlighted that Coforge’s focus on large deal wins and its operational efficiency could help the company outperform peers in a sluggish IT services market.
Strong FY26 Outlook
Coforge expects FY26 to be another year of robust growth, even without factoring in any revenue from its recent Sabre deal. The management has guided for a strong first half of the fiscal, with an even more optimistic second half.
Unlike competitors, Coforge is not dependent on a recovery in new IT spending. Instead, it is focusing on increasing its share of existing client budgets, which has allowed it to maintain strong growth momentum.
EBIT Margins Set to Improve in FY26
The company anticipates an expansion in its EBIT margins by at least 140 basis points, aiming for a margin of 14% in FY26—up from 12.6% in FY25. This is a significant milestone, as it means Coforge will achieve its FY27 margin goal a year ahead of schedule.
Coforge’s Growth Strategy: What Sets It Apart?
Coforge has differentiated itself in the Indian IT landscape through its strong execution capabilities and client-focused approach. Rather than waiting for RFPs (Request for Proposals), Coforge actively engages with clients and pitches large, transformative IT deals.
This forward-leaning strategy not only accelerates deal closures but also strengthens client relationships—turning Coforge into a preferred partner for digital transformation projects across sectors such as travel, insurance, and BFSI.
Analyst Ratings: Market Is Mostly Bullish
Of the 38 analysts tracking Coforge, 28 have a ‘Buy’ rating, 4 have a ‘Hold’ rating, and 6 recommend ‘Sell’. This shows a high level of confidence from institutional investors, especially after the recent guidance and JPMorgan’s updated outlook.
Current Stock Performance
As of Tuesday, Coforge shares are trading at ₹1,865.65, up 4.02% during the session. Despite this rally, the stock is still down nearly 4% in 2025 so far, offering a potential entry point for investors seeking to benefit from the forecasted upside.
Company Background
Coforge Ltd. (formerly NIIT Technologies) is a mid-cap IT services company headquartered in Noida, India. It specializes in digital services, including cloud computing, data analytics, and application modernization. The company has a strong global presence, especially in the U.S., Europe, and the Asia-Pacific region.
Coforge serves industries such as BFSI, travel and hospitality, healthcare, and insurance. Its recent acquisition deals, including the Sabre Global Development Center, have strengthened its position in the travel tech segment.
Recent Developments
- JPMorgan gives 'Overweight' rating; top pick in IT.
- Price target set at ₹2,080 — 16% upside from current levels.
- FY26 margin guidance increased to 14%.
- Focus on large deal wins and execution prowess.
- Stock up 6% today but down 4% YTD — could be a value buy.
Should You Invest in Coforge Now?
For long-term investors looking for exposure to India’s digital transformation story, Coforge presents a compelling case. Its margin improvement, strong deal pipeline, and differentiated strategy could lead to sustained growth over the next few years.
However, investors should also be mindful of global macroeconomic risks, potential slowdowns in IT budgets globally, and currency fluctuations. As always, it is advisable to diversify and consult with a financial advisor before making investment decisions.
Conclusion
With JPMorgan backing Coforge as its top IT pick and a strong margin and growth outlook for FY26, Coforge Ltd. could be a stock to watch closely in the coming months. As it continues to defy the cautious stance of its peers, Coforge might just deliver on its promise of consistent outperformance.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Always do your own research before investing.
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