UBS upgrades Tech Mahindra citing earnings upside, valuations

UBS upgrades Tech Mahindra to "buy" from "sell" and raises its target price to 1,650 rupees from 920 rupees, citing potential earnings upside, cheap valuations.

The investment bank says the recent rupee weakness will help offset some of the cost associated with trying to increase revenue.

UBS adds that its shares valuations at a 50% discount to Tata Consultancy Services Ltd offer potential upside on earnings surprises.

Tech Mahindra's shares are up 1.6% at 10:32 a.m.