CLSA Cuts Price Targets for 8 IT Stocks, Remains Optimistic on Sector Growth

• CLSA has reduced price targets for eight IT companies: Coforge, HCLTech, Infosys, LTIMindtree, Persistent Systems, TCS, Tech Mahindra, and Wipro.
• Despite cuts, CLSA reiterates "outperform" rating for most, with "high-conviction outperform" for Persistent Systems and Coforge.
• The firm projects a potential 5-10% downside for stock prices, assuming 5% terminal growth in rupee terms.
• CLSA notes no change in IT Services companies' positioning in the AI world and positive management commentary from Infosys.
• Tech Mahindra and Infosys are preferred among largecaps, while Persistent Systems and Coforge are favored midcaps.