Citi Maintains BUY on TCS, Infosys, Wipro, HCL

Citigroup in its latest research report has maintained a BUY on all the front line IT stocks.

TCS is expected to report an EPS of Rs 54.26 and Rs 65.67 for Fy2008 and FY2009. Price target for TCS is Rs 1560.

Infosys is expected to report an EPS of Rs 84.74 and Rs 105.9 for FY08 and 09 respectively. Price target for Infosys is Rs 2660. 21% upside from current levels.

Slowdown in Telecom sector is unlikely and Wipro is all set to cash in. Wipro’s BPO is also doing extremely well. It is expected to report an EPS of Rs 25.05 and Rs 31.1 for FY08 and FY09 respectively. Price target for Wipro is Rs 730. I am wondering if Wipro will spin off its BPO as a separate business to unlock shareholder value ? Maybe not as the management is much more ethical and has long term road map and blueprint of the company rather than short term stock market profits.

Citi continues to be bullish on HCL Technologies. HCL Tech is expected to report an EPS of Rs 36.5 and Rs 44.05 for FY08 and FY 09 respectively. Conservative price target for HCL Tech is Rs 770 [Cum Bonus]

Detailed review of Satyam’s stock recommendation is available here.

Citi has recommended a SELL on iFlex solution with a price target of Rs 1850 as the company’s stock is currently overvalued compared to its peers.