HCL Tech Climbs 6%, Yet Tariff Worries Persist: 3 Reasons Analysts Are Cautious

The brokerage firms maintain positive views for the stock because the company predicts minimal business disruption due to tariffs.

Nomura on HCL Technologies: cuts target price by 9.2%

The management expects tariff-induced uncertainty to affect other sectors beyond retail and manufacturing with a quarter's delay which prompted Nomura to reduce the target price by 9.2% from Rs 1,840 to Rs 1,670. As macro uncertainty softens discretionary demand, company management expects clients to speed up cost reduction initiatives. The brokerage maintained its positive ‘Buy’ recommendation for the stock.

Jefferies on HCL Technologies: Cuts target price

Jefferies maintained its Hold recommendation for the stock while setting a target price of Rs 1,490. The earnings from the reporting quarter were on target while deal wins drove the positive outlook with FY26 growth guidance projected at 2%-5% YoY on constant currency terms. Jefferies confirmed that business operations faced minimal tariff impacts so far and anticipated spending limitations across various sectors.

JPMorgan on HCL Technologies: upgrade to Overweight

The brokerage firm has increased its rating for HCLTech to 'Overweight' and set a target price of Rs 1,750. The firm reports that HCL Technologies met its earnings estimates in an unexpected way while FY26 forecasts remain unaffected by post-tariff economic factors. The company’s services segment has maintained a lead or matched the growth of its fastest-growing scale competitors for three consecutive years.

Nuvama on HCL Technologies: Upgrade to Buy

Nuvama changed its stock recommendation to ‘Buy’ from ‘Hold’ but kept its target price steady at Rs 1,700. The firm's FY26 revenue growth forecast of 2%-5% in constant currency YoY surpassed market expectations and Infosys' forecast of 0%-3% while maintaining a reasonable CQGR range of 0.3%-1.5%.