Infosys Shares Fall 1% After Analyst Meeting, Down 21% YTD; analysts optimistic, see up to 33% potential rally


Shares of Infosys fell 1% on Wednesday, a day after the IT major at an analyst meeting reiterated its forecast for FY23 of 13 to 15% and said demand for services IT was strong and there was no visible impact from macro headwinds. So far this year, Infosys stock has plunged more than 20%, underperforming Nifty which has fallen 6%. Analysts expect Infosys’ share price to recover going forward on strong growth. A few analysts who attended the analyst meeting maintained their buy ratings on the stock, with their price target suggesting as much as 33% upside potential over the counter. Shares of Infosys traded at 1,489 rupees per share, down 0.96% on intraday BSE.

Analysts maintain “Buy” rating on Infosys stock

Motilal Oswal: Buy
Target price: Rs 2,000; Up: 33%

Motilal Oswal analysts said that although growth in the March quarter was moderate, demand remained intact and Infosys’ order book was strong. Management’s growth forecast for FY23 and the addition of high headcount provide additional visibility upon request. “We expect Infosys to deliver margin above its benchmark range, with strong growth and reduced reliance on contractors as attrition declines. We expect the business to be one of the main beneficiaries of the acceleration in IT spending. Based on our revised estimates, the stock is currently trading at 21x FY24E EPS. We value the stock at 28 times FY24 EPS, implying a target of Rs 2,000,” they said, implying a 33% upside.

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Financial JM: Buy
Target price: Rs 1,800; Up: 19%

JM Financial said Infosys reiterated its commitment to the playbook unveiled in 2018, which was underpinned by customer relevance and a continued focus on execution. This, he said, has helped Infosys lead Tier I technologies on growth in recent years. The brokerage noted that Infosys has performed well in large contracts and operating large accounts. In reality. Infosys had better conversion of more than 50 million customers at the top tier compared to TCS in recent years, analysts at the brokerage firm said. “We are moderating our dollar revenue growth estimates to account for unfavorable cross movements and realigning the exchange rate to 77 to the dollar, resulting in a 1-1.5% reduction in our FY22-24 EPS. We are maintaining BUY with a revised target of Rs 1,800 from Rs 1,970 earlier,” the brokerage said.

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IIFL Titles: Buy
Target price: Rs 2,000; Up: 33%

Analysts at IIFL Securities noted that Infosys has highlighted the criticality of enterprise digital transformation projects that are driving continued demand momentum, despite ongoing macro challenges. Its strong backlog and growing deal pipeline, combined with strong hiring prospects, give management the confidence to meet its FY23 revenue growth guidance of 13-15% year-on-year . Its near-term goal is to meet demand and gain wallet share relative to peers, which is reflected in its FY23 EBIT margin forecast of 21-23%, analysts said. “We expect INFO to generate top quartile Cagr revenue/EPS of 15%/17% in FY22-24ii and it remains our top large-cap pick in the industry,” the company said. brokerage house. He maintained a “buy” call on the stock with a target price of Rs 2,000.

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(The stock recommendations in this story are from the respective research analysts and brokerage firms. The Singapore Time Online takes no responsibility for their investment advice. Investments in the capital markets are subject to rules and regulations. Please consult your investment advisor before investing.)



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