Mumbai: Bank of America-Merrill Lynch has upgraded top software services firm Tata Consultancy Services to "buy" from "underperform", the investment bank said in a research note on Monday.
Late on Friday, Tata Consultancy reported a 33 percent rise in quarterly profit, beating street estimates as demand for outsourcing surged and prices stabilised.
"TCS should be a beneficiary of stabilising IT budgets and a pick up in offshoring, particularly the banking, financial services and insurance vertical," Bank of America-Merrill Lynch said in a note.
The investment bank had last week upgraded Infosys Technologies, the No. 2 software services exporter to "buy" from "underperform".