HSBC upgrades TDCX to Buy, says selloff overdone

As previously reported, HSBC upgraded TDCX to Buy from Hold with a price target of $6, down from $8.50. While the company cut its 2023 sales growth guidance by 2.5%, its headwinds should reverse in 2024 with the second half of 2023 likely the trough, the analyst tells investors in a research note. The firm says TDCX’s client diversification also points to a better 2024 as it has greater than 40% of its market capitalization now in cash. The stock’s recent weakness is overdone, contends HSBC.