A busy morning for broker calls with Infosys drawing the most divided analyst opinion after its Q4 FY26 results, Dr Reddy’s receiving back-to-back downgrades on the Semaglutide opportunity, Cipla getting a bullish nod on Ventolin HFA approval and Union Bank receiving a neutral stance with a stable outlook. Here is the complete roundup.
Infosys — Most Divided Call of the Day
The street is split on Infosys after Q4 FY26 results that showed strong year-on-year headline numbers but a weak constant currency sequential performance and FY27 guidance that disappointed on growth.
Nomura maintains Buy with a target price of ₹1,640, expecting 3.4% USD revenue growth in FY27 and stable margins at approximately 21%. The brokerage highlights better outlook for BFSI and EURS verticals and notes the stock trades at just 15x FY27 EPS of ₹82.
HSBC also maintains Buy with a target of ₹1,585, noting the stock is near a five-year low despite 50% EPS growth over the period. HSBC flags that if Infosys delivers the upper end of its guidance, it could have positive read-across for the entire IT sector.
MOSL maintains Buy with a target of ₹1,425, acknowledging a tough road ahead as AI deflation begins to bite, but noting the PAT beat of ₹88 billion against an estimate of ₹73 billion as a significant positive. MOSL flags concern that large deal TCV of $3.2 billion was down 33.3% quarter-on-quarter with a book-to-bill ratio of 0.6.
Citi is Neutral with a target cut to ₹1,300, noting revenue and EBIT margins came in below expectations and flagging management commentary around slower decision-making in March and high competitive intensity. Citi lowers FY27-28 EPS by 1-2% but believes Infosys will continue to outperform peers in FY27.
Jefferies holds at Hold with a target of ₹1,235, pointing to the 3% quarter-on-quarter decline in headcount and 19% year-on-year decline in net-new deal wins as key disappointments alongside the weaker growth guidance. However, the 4% dividend yield is seen as a downside cap.
DAM Capital downgrades to Neutral with a target of ₹1,300, flagging the FY27 European auto client ramp-down that will impact revenues by 1% and noting that three quarters of that impact will also weigh on FY28 growth. DAM estimates organic growth at 2.8-3% constant currency.
Dr Reddy’s — Double Downgrade on Semaglutide Caution
Two brokerages have moved negative on Dr Reddy’s in a single session, both cautioning that the recent 9% stock surge on unconfirmed generic Semaglutide approval reports in Canada overstates the opportunity.
Goldman Sachs downgrades to Sell from Neutral with a target of ₹1,075, arguing that even if timely approval comes through, the generic Ozempic opportunity for early movers in Canada is likely to be short-lived as competition intensifies faster than originally anticipated. GS flags that Dr Reddy’s pipeline for larger value drugs beyond gOzempic remains limited — Abatacept biosimilar is meaningful only from FY29 onwards — and cuts FY26-28 EPS by 8-26%.
Citi maintains Sell with a target of ₹1,070, estimating FY28 product revenue of $50 million in what it sees as a six-player market — far below the bull case — and noting that even in a three-player market scenario with 65% mandatory generic discount, upside beyond $150-180 million appears improbable. Citi also expects Q4 FY26 earnings to reflect ex-Revlimid numbers, triggering downward Street estimate revisions.
Cipla — Buy on Ventolin HFA Approval
Citi reiterates Buy on Cipla with a target of ₹1,530, pointing to the approval for generic Ventolin HFA — the approximately $490 million branded inhaler — as a crucial pipeline milestone that aligns with management’s Q3 FY26 guidance of two near-term respiratory approvals. Citi expects the product to contribute $50-70 million in revenue, helping offset Lanreotide disruptions in the US business. The brokerage notes this approval is vital for rebuilding investor confidence in Cipla’s complex generic pipeline, which is essential for mitigating the gRevlimid cliff. Key upcoming launches to watch include generic Advair, another undisclosed respiratory product and a peptide product likely to be Teduglutide.
Union Bank of India — Neutral, Fairly Priced
UBS initiates or maintains Neutral on Union Bank with a target of ₹195, characterising the Q4 results as a PAT beat driven by lower operating expenses and provisions while noting NII remains weak. The brokerage expects NIMs to show stable to slightly improving trends supported by continued deposit repricing, and estimates an average RoA of approximately 1.1% and RoE of 14% over FY27-29. At 1x FY27 price-to-book, UBS views the stock as fairly priced given its lower growth profile but stable margins and improving earnings trajectory.
LTIMindtree — Generally Constructive
The IT mid-cap draws a broadly positive read despite the quarter missing on growth slightly.
Nomura maintains Buy with a target of ₹5,000, noting the new CEO’s strategy is making progress and expecting EBIT margin to improve to 15.7% in FY27. The 100 basis point sequential margin dip in Q4 is attributed to salary hikes likely to continue into Q1 FY27.
CLSA is Outperform with a target of ₹5,755, highlighting FY26 order book growth of 10% year-on-year to $6.6 billion and noting the BFSI top client has bottomed out while the Microsoft account grew double digits in FY27. CLSA flags management’s five-year revenue doubling plan with inorganic elements.
HSBC maintains Buy with a target of ₹5,250, expecting FY26 revenue growth momentum to be sustained in FY27 at the top end of the larger IT peer group.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Broker targets and ratings represent the views of the respective research houses and not Business Upturn. Readers are advised to consult a SEBI-registered financial advisor before making investment decisions.