
Infosys has garnered mixed reactions from top brokerages following its recent performance and management outlook. While most analysts maintain a positive stance with upward revisions in target prices, one brokerage remains cautious with a ‘Sell’ call. Here’s what brokerages suggest for Infosys stock:
Brokerage Ratings and Targets
- Nomura: Reiterates a ‘Buy’ rating and raises the target price to ₹2,220 (from ₹2,190), citing strong growth prospects and consistent execution.
- Nuvama: Maintains ‘Outperform’ and revises the target price upward to ₹2,350 (from ₹2,250), supported by robust client traction and deal momentum.
- Bernstein: Continues with an ‘Outperform’ rating, raising the target price to ₹2,330 (from ₹2,270), reflecting confidence in its demand outlook.
- BofA Securities: Retains a ‘Buy’ call and hikes the target price to ₹2,150 (from ₹1,975), highlighting potential recovery in discretionary spending.
- HSBC: Keeps the ‘Buy’ rating unchanged with a target price of ₹2,120, citing stable fundamentals and moderate growth expectations.
- Morgan Stanley (MS): Maintains an ‘Overweight’ stance with a target price of ₹2,150, emphasizing Infosys’ positioning for medium-term growth recovery.
- Investec: The lone cautious voice, sticking to a ‘Sell’ call, while revising the target price to ₹1,773 (from ₹1,700), pointing to limited upside amid cost pressures.
Market Performance
Infosys’ current market price stands at ₹1,920.05, offering a potential upside of up to 22.4% based on the highest target price of ₹2,350 from Nuvama. Most brokerages expect the stock to benefit from long-term growth in its digital and cloud businesses.
Key Highlights
- Strong client traction and deal momentum reflected in upward target revisions by most brokerages.
- Mixed views on margin recovery and discretionary spending, with cautious optimism for FY25.
- Commentary from management on demand stability and cost optimization strategies will be key factors to watch.
With a majority of brokerages maintaining a positive stance, Infosys remains a strong candidate for medium to long-term portfolio considerations. However, cautious investors may weigh potential risks highlighted by Investec’s ‘Sell’ rating.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.