Infosys shares are in the spotlight after the company announced a strategic joint venture in Australia with Telstra, prompting mixed reactions from leading brokerages on its growth impact and valuation.
Morgan Stanley on Infosys: Hold, target price ₹1,700/sh
Morgan Stanley maintained its Equal-Weight rating, noting that the JV with Telstra — involving the Versent Group, which has a blue-chip client base across sectors such as government, education, financial services, energy, and utilities — will strengthen Infosys’ local presence in Australia. The brokerage highlighted that the deal builds on the company’s existing collaboration with Telstra and that the price paid is reasonable. Assuming a high single-digit margin profile, Morgan Stanley does not expect the JV to dilute EPS.
Nomura on Infosys: Buy, target price ₹1,880/sh
Nomura retained its Buy call after Infosys announced the carve-out deal in Australia, under which it will acquire a 75% stake and operational control in the new entity, with Telstra holding the remaining 25%. Infosys will pay AUD 233 million for its stake, with the deal estimated to add $70 million to revenue in FY26, contributing around 35 bps to overall growth. The brokerage views the acquisition as a positive step in expanding Infosys’ global delivery footprint.
Kotak Institutional Equities on Infosys: Buy, target price ₹1,850/sh
Kotak Institutional Equities reiterated its Buy rating, highlighting Infosys’ acquisition of a 75% stake in Versent Group, a wholly owned subsidiary of Telstra, for AUD 234 million (US$152 million). Versent specializes in cloud and digital transformation, with a strong focus on the public sector, financial institutions, and energy & utilities. Kotak believes Infosys trades at attractive valuations and sees the deal as strengthening its position in the Australian market while enhancing its cloud capabilities.
The contrasting stances indicate cautious optimism from Morgan Stanley, focusing on strategic alignment, while Nomura and Kotak see stronger growth catalysts in the deal’s immediate revenue contribution and long-term market positioning.
Disclaimer: The views and recommendations above are those of individual brokerages and do not represent investment advice. Investors are advised to consult certified financial advisers before making investment decisions.