Global brokerage firm Jefferies turns bullish on Infosys stock post its Q1 earnings. Jefferies has raised its targer price for Infosys shares to Rs 2,040, implying an upside of 16% from the CMP of Rs 1,758 of Infosys shares. The brokerage believes that the IT major revising its guidance higher is conservative in context of strong deal wins. Jefferies says that initial signs of recovery in BFSI and strong deal wins suggest that the worst is behind for the company.
Infosys reported a strong set of Q1 earnings, leading its ADR to jump 4.5% in pre-market trade and 9.5% at opening’s. Shares of Infosys too ended higher by 1.8% at Rs 1,758 on the NSE ahead of its Q1 earnings. Infosys posted a net profit of ₹6,368 crore, higher than the CNBC-TV18 poll estimate of ₹6,198 crore. The IT major raised its revenue growth forecast for the financial year 2025 to between 3% and 4%. This is an increase from the 1% to 3% guidance issued during the March quarter.
The EBIT margin for Infosys in the April-June quarter expanded by 100 basis points to 21.1%, higher than both the estimate of 20.7% and the March quarter figure of 20.1%. EBIT for the quarter was ₹8,288 crore, exceeding the CNBC-TV18 poll estimate of ₹8,040 crore and marking an 8.8% sequential increase.
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Infosys