Bernstein Top Stock Picks for 2025: A Focus on IT, Media, and Telecom

Global brokerage firm Bernstein has unveiled its top stock recommendations for 2025, urging investors to adopt a “stick to the winners” approach. The brokerage’s focus is on sectors with strong growth prospects, particularly IT, media, and telecom. Bernstein’s preferred stocks include Infosys, Tata Consultancy Services (TCS), Coforge, Persistent Systems, Zomato, and Bharti Airtel.

IT Stocks Lead the Pack
Bernstein remains bullish on IT stocks, citing an earnings upgrade cycle, a favorable macro environment in the US, and recovery in discretionary spending and generative AI (GenAI). The brokerage favors large-cap leaders such as Infosys and TCS, alongside growth-focused mid-caps like Persistent Systems and Coforge.

  • Infosys: Bernstein expects the company to continue its leadership in growth, particularly driven by strengths in BFSI (banking, financial services, and insurance) and its US business. Bernstein projects a growth rate of 10%+ from FY25 to FY27 and estimates an EPS growth rate of 14% CAGR. Target price: ₹2,350.
  • TCS: Described as a “margin champion,” TCS benefits from large deal wins and strong growth prospects. Bernstein projects a growth rate of 9.5%+ for FY25-27 with an EPS CAGR of 13%. Target price: ₹4,820.
  • Persistent Systems: Known for its leadership in software product engineering and technology-led services such as cloud and AI, Persistent has seen rapid revenue growth (30% CAGR over the last 3 years). Bernstein expects the company to grow at a CAGR of 19% over FY25E-FY27E, with an EPS CAGR of 27%. Target price: ₹7,280.
  • Coforge: Bernstein upgraded Coforge to “Outperform,” with a new target price of ₹11,280 per share. The company’s strong client base and growth trajectory, including a revenue target of $2 billion by FY27, make it an attractive investment. Bernstein raised its consolidated FY25/26 EPS estimates by 4.9% and 11%, respectively.

Other Notable Picks

  • Zomato: As a leader in food delivery and quick commerce, Zomato is poised for continued growth, benefiting from a strong user base and expanded total addressable market (TAM) through its Dine Out initiative. Target price: ₹335.
  • Bharti Airtel: Bernstein sees Bharti Airtel as a long-term winner in telecom, supported by tariff hikes, improving cash flows, and growth in enterprise services, fiber, and 5G rollout. While subscriber churn may increase post-tariff hikes, the company’s strong positioning in the sector remains a key advantage. Target price: ₹1,770.

Disclaimer: The views and recommendations presented are those of individual analysts or broking companies

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