Brokerages upbeat on TCS after strong Q4; shares up nearly 7% to Rs 3,406

Last week, IT shares had declined on Infosys' disappointing outlook for 2018-19

Analysts have turned upbeat on Tata Consultancy Services (TCS) after it reported better-than-expected March 2018 quarter earnings.

At least half a dozen foreign brokerages increased their price target for the stock by over 15 per cent. The sharp upgrades propelled TCS’ shares by nearly 7 per cent to Rs 3,406, a lifetime high. Market players said the one-for-one bonus announcement also buoyed investors’ sentiment.

TCS, valued at $99 billion, reported a 4.5 per cent rise in quarterly earnings after trading hours on Thursday. The firm’s digital sales crossed $4 billion in 2017-18, while revenue from services, such as cloud, grew about 43