TCS shares jump over 3% after Q1 results. What are Morgan Stanley, Citi and other brokerages saying?

TCS Q1FY27 revenue rose 14% YoY to Rs 72,275 crore with constant-currency sequential growth of 0.4% and operating margin contracting 130 bps to 24% due to wage hikes. The company reported total contract value of $9.5 billion, including an $800 million AI deal with SKF, with AI services revenue now at an annualised run rate of $2.6 billion (about 8% of revenue). Brokerages remain mixed: Morgan Stanley retained Equal Weight with Rs 2,200 target and Citi maintained Sell cutting target to Rs 1,825, while Nuvama (Buy, Rs 3,000), Motilal Oswal (Buy, Rs 2,350), and Emkay (Add, Rs 2,600) stayed constructive on valuations; shares jumped over 3% post results.