# Jefferies cuts TCS target for third time, sees 23% downside 2026-08-13T07:37:45+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 2 independent outlets Jefferies has slashed its target price on Tata Consultancy Services to Rs 1,800 from Rs 2,275, its third cut this year, warning of AI-led revenue deflation. The brokerage retained an 'underperform' rating on the stock, implying a 23% downside from Wednesday's close of Rs 2,339. Jefferies expects TCS to deliver a muted 4% to 5% CAGR in constant currency revenue and EPS over FY26-29, citing high exposure to application-managed services and BPO. It flagged a flat order book year-on-year in the June quarter and a 3% headcount decline. The brokerage noted TCS trades at a ~30% premium to Accenture, against a 10-year average of 1%, and said the premium is unjustified by growth outlook. In contrast, BofA has a 'neutral' rating on TCS with a Rs 2,365 target. It said Chandrasekaran's familiarity with the company aids strategic planning but sees little risk of restructuring before 2028. Meanwhile, Business Today reports that Choice Broking has a 'Reduce' rating on TCS with a Rs 2,320 target, preferring Tech Mahindra in the Tier-I space and Coforge, Persistent Systems among mid-caps. ## Coverage - ndtvprofit.com - businesstoday.in Tags: AI disruption, Indian IT sector, IT stocks, Jefferies, target price, TCS Canonical: https://indianopinion.org/jefferies-cuts-tcs-target-to-rs-1800-flags-ai-revenue-risk/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/jefferies-cuts-tcs-target-to-rs-1800-flags-ai-revenue-risk/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.