Shares of Infosys Ltd climbed 2.12% to ₹1,626.45 in morning trade on Tuesday, March 25, on IT sector rally.
The global brokerage firm Jefferies reaffirmed its ‘Buy’ rating on the IT major, even though it slashed the target price by 15% to ₹1,835 from ₹2,150.
The stock, which hit a high of ₹2,006.45 in December 2024, has since declined nearly 21% amid concerns over a potential slowdown in the US economy. Jefferies believes this pullback presents a favorable risk-reward scenario for investors, citing improved free cash flow conversion, limited risk of PE de-rating, and consistent dividend payouts.
The brokerage expects FY26 constant currency revenue growth between 4-6%, even if discretionary tech spending does not rebound. It trimmed EPS estimates by 2–4%, but still sees 15% upside from current levels.
Infosys is now trading at 23.93 times its one-year forward earnings, lower than TCS (26.96x) and HCL Tech (25.50x) but higher than Wipro (22.75x).
Meanwhile, Morgan Stanley downgraded Infosys from ‘Overweight’ to ‘Equal weight’ last week, for the first time in four years, cutting the price target to ₹1,740 citing moderate growth projections until FY27.
Out of 47 analysts, 34 recommend ‘Buy’, 7 say ‘Hold’, and 6 recommend ‘Sell’ on Infosys.
