CLSA Maintains Outperform Rating on TCS Citing SaaS Growth and AI Integration

CLSA has maintained an Outperform rating on Tata Consultancy Services (TCS), with target prices of Rs 3,593 and Rs 2,686 per share in two reports, highlighting potential 39% upside and growth driven by SaaS adoption and AI integration. The brokerage anticipates a Rs 35 dividend and possible share buyback, supported by TCS's partnership with ServiceNow to enhance AI-driven enterprise automation. However, concerns remain over AI disruption and macroeconomic risks affecting IT sector valuations.