Global financial services firm Morgan Stanley has issued a new price target for shares of Tata Consultancy Services Ltd (TCS), projecting a significant upside for the Indian IT major. In a research note dated April 22, 2026, the brokerage reaffirmed its 'Overweight' rating on TCS stock with an 'In-Line' industry view.
Morgan Stanley has set a price target of Rs 2,880 for TCS, a notable increase from its trading level of Rs 2,566.50 observed on Wednesday, April 22, 2026, when the stock was down 1.69% in early trade. This target suggests a potential return of over 12% for investors.
Why Morgan Stanley is Bullish on TCS
The positive outlook from Morgan Stanley is underpinned by several key factors. The brokerage highlighted that TCS appears well-positioned concerning its F27 (fiscal year 2027) revenue growth estimates, expecting approximately 4% growth. This projection is considered to be "in line with to better than what we see for many large-cap peers."
While TCS experienced underperformance in revenue growth during F26, Morgan Stanley believes this factor is already incorporated into the stock's current valuation. The company's price-to-earnings (P/E) multiple is trading at a significant discount compared to its industry rivals, such as HCL Technologies (HCLT), a gap Morgan Stanley expects to narrow in the upcoming quarters.
"We believe the share price will rise relative to the country index over the next 60 days," Morgan Stanley stated in its note, assigning an 80% probability to this short-term scenario.
Recent Financial Performance
In related news, TCS reported robust financial results for the fourth quarter of the current fiscal year (FY26, assuming the article's future date alignment). On April 9, the company announced a 12.12% year-on-year (YoY) rise in its consolidated net profit, reaching Rs 13,784 crore, up from Rs 12,293 crore in the year-ago period.