Goldman trims 2012 global tech spending forecast

Tuesday, 17 July 2012 00:00 - - {{hitsCtrl.values.hits}}

Reuters Market Eye: Goldman Sachs trims its global technology spending forecast to 3% from 4% for calendar year 2012 after its June annual survey of the industry. Goldman says expects lower GDP growth in advanced economies and a lower global fixed investment forecast.

Investment bank says survey results consistent with its views for “modest” fiscal 2012-13 earnings for Indian IT services large caps: forecasts 10% US dollar revenue growth Vs 18% in fiscal 2012 ended in March.

Goldman prefer HCL Technologies, reiterates “buy” rating, on expectations for better growth and revenue after $2.5 billion in deals over the past six month. Adds HCL Tech trading at a 22-23% discount to its eight-year historic average and other large caps.