On Friday, September 12, 2025, Infosys remained in focus as the company announced its largest-ever buyback worth ₹180 billion at ₹1,800 per share, covering around 2.4% of equity. Multiple brokerages — CLSA, Nomura, Kotak Institutional Equities, and Morgan Stanley — shared their views on the development, underlining near-term support from the buyback and longer-term drivers such as stable demand, cost take-out deals, and generative AI investments.
CLSA maintained an outperform rating with a target price of ₹1,861, noting that Infosys is focusing on cost optimisation amid weak discretionary spending while expecting generative AI to expand overall IT budgets. It believes the buyback will provide support to the stock during a seasonally weak second half of FY26.
Nomura retained its buy rating with a higher target price of ₹1,880, emphasising the significance of the record buyback. It expects 3.8% year-on-year USD revenue growth in FY26, including 40 basis points from acquisitions, excluding the recently announced Versent deal. With Infosys trading at 20x FY27 forward EPS and offering a 4.4% dividend yield, Nomura sees valuations as attractive.
Kotak Institutional Equities reiterated a buy with a target price of ₹1,850, highlighting stable demand from cost take-out deals and Infosys’ early generative AI investments that have enhanced growth, pricing, and margin defence. Kotak added that Project Maximus has already delivered across dimensions and will help achieve margin aspirations.
Morgan Stanley maintained an equal-weight rating with a target price of ₹1,700. It said the buyback exceeded its earlier expectations of ₹100–140 billion, and execution could take three to four months. The timing of the announcement, according to MS, signals confidence in FY26 guidance stability amid global macro uncertainty.
At a current market price (CMP) of ₹1,512.20, Infosys offers an upside potential ranging from 12% to 24%, depending on brokerage estimates.
Brokerage views on Infosys
| Brokerage | Call | CMP (₹) | Target Price (₹) | Upside (%) |
|---|---|---|---|---|
| CLSA | Outperform | 1,512.20 | 1,861 | ~23.1% |
| Nomura | Buy | 1,512.20 | 1,880 | ~24.3% |
| Kotak Institutional Eq. | Buy | 1,512.20 | 1,850 | ~22.3% |
| Morgan Stanley | Equal-weight | 1,512.20 | 1,700 | ~12.4% |
Disclaimer: The views and investment recommendations expressed in this article are those of the respective brokerages. Business Upturn does not endorse or recommend any investment decisions. Investors are advised to consult financial experts before making investment choices.
