Coforge shares: JPMorgan turns 'Overweight', what it means for the IT player

Coforge shares rose 6% on Tuesday after JPMorgan bestowed an 'Overweight' rating on the IT stock, marking it as their top IT sector pick. The brokerage set a target price of Rs 2,080, suggesting a potential upside of 16% from current levels. Despite this uptick, the stock has decreased nearly 4% in 2025. Coforge's management remains optimistic, untroubled by macroeconomic challenges affecting peers, and foresees robust growth in FY26, excluding the Sabre deal impact.

Subsequently, Coforge Ltd. shares surged 6% on June 10, trading at Rs 1,865.65 on BSE. Market cap of the firm rose to Rs 61,049 crore.  A total of 2.18 lakh shares of the firm changed hands amounting to a turnover of Rs 40.58 crore. The IT stock is overbought on charts with a RSI of 73.8. Coforge shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages, which indicates the momentum is bullish both in long and short term.  

The company anticipates EBIT margins to rise by at least 140 basis points in FY26, reaching 14%, thus achieving its FY27 margin goals a year ahead of schedule. This outlook is bolstered by Coforge's strategy of actively pursuing large deals, distinguishing it from competitors who typically wait for RFPs. This proactive approach is complemented by a focus on increasing its share of existing tech budgets, differentiating itself from peers awaiting a discretionary IT spend recovery.

Coforge is poised for significant growth in FY26, with the first half expected to perform well and the second half promising even better results. The strategic initiatives, including proactive deal-making and margin improvement, position Coforge advantageously within the IT sector. JPMorgan's favourable assessment reinforces investor confidence, emphasising Coforge's capability to navigate industry challenges and harness opportunities efficiently.

By concentrating on execution prowess and securing large deals, Coforge aims to outperform its competitors and meet its ambitious growth targets. Additionally, the company's focus on execution excellence and strategic growth initiatives underlines its commitment to achieving long-term success, further solidifying its position as a leader in the IT sector.

Coforge Limited is an India-based information technology (IT) solution company. It is engaged in the in-application development and maintenance, managed services, cloud computing and business process outsourcing. The Company provides computer programming consultancy and related activities.