BofA selective on midcap IT: Coforge named Sole ‘Buy’ but Mphasis, Persistent rated ‘Underperform’

Artificial intelligence is expected to reshape the next phase of growth for India’s IT services industry, but BofA believes investors should remain selective. The brokerage initiated coverage on four mid-cap IT companies with sharply contrasting recommendations, saying execution, earnings visibility and valuation will determine which companies outperform as enterprise technology spending gradually recovers.

BofA initiated coverage on Coforge Ltd. with a Buy but the brokerage house is cautious on Mphasis, Persistent Systems and also LTIMindtree.