Nuvama raises HCLTech target price to Rs 2,020; says Gen AI to drive growth

Nuvama on HCLTech: Nuvama, a domestic brokerage, has raised its target price for IT giant HCLTech to Rs 2,020 per share from Rs 1,800, reflecting a 15.5 per cent upside. The brokerage, however, has maintained a ‘Buy’ rating on the scrip.

“HCLTech’s sharp re-rating has been driven by higher growth than peers and rectification of its capital allocation policy — fundamentals that we believe shall sustain in FY25 too. We are upgrading target valuation to 27x September-26 PE (earlier 24x) on better growth visibility; maintain ‘Buy’ with a target price of Rs 2,020 (earlier Rs 1,800),” Vibhor Singhal, Nikhil Choudhary, Yukti Khemani of Nuvama said in a note.