Several leading brokerages have shared their ratings and target prices for Infosys following its Q2 FY25 results. The feedback is mixed, with some pointing to solid fundamentals, while others remain cautious due to margin pressures and weaker-than-expected deal momentum. Here’s what the brokerages are saying:
| Brokerage | Rating | Target Price (Rs) | Key Points |
|---|---|---|---|
| Bernstein | Outperform | 2,270 | Infosys remains a top pick; solid deal momentum and leadership position support positive outlook. |
| Investec | Sell | 1,700 | Weak catalysts for H2, deal wins in Q2 were soft; sees no meaningful margin tailwinds. |
| Nomura | Buy | 2,130 | Mixed Q2 with revenue beat but margin miss; maintains top pick with slight EPS adjustments for FY25-27. |
| Morgan Stanley | Overweight | 2,150 | Expects potential short-term correction due to weak deal wins but sees long-term support at 24x FCF multiple. |
| Citi | Neutral | 1,960 | Decent Q2 results with modest growth; decline in large deal TCV and lower headcount are concerns for H2. |
Summary:
- Bernstein reiterated its ‘Outperform’ rating, raising the target price to Rs 2,270, supported by Infosys’s continued strong deal momentum and leadership position, calling it a top pick.
- Investec maintained its ‘Sell’ rating, lowering the target price to Rs 1,700. The brokerage cited weak deal wins in Q2 and no meaningful catalysts or margin tailwinds for the second half of the fiscal year.
- Nomura kept its ‘Buy’ rating with a target price of Rs 2,130, noting a mixed Q2 performance with a revenue beat but a margin miss. Despite the modest miss, Nomura remains positive on the stock.
- Morgan Stanley retained its ‘Overweight’ rating, with a target price of Rs 2,150, noting the potential for a short-term correction due to weaker deal wins, but sees long-term support for the stock at its 24x free cash flow multiple.
- Citi maintained its ‘Neutral’ rating with a target price of Rs 1,960. While Q2 results were decent, the brokerage is cautious about the decline in large deal total contract value (TCV) and headcount reduction, suggesting limited growth in the second half of FY25.
Disclaimer: The information provided in this article reflects the views and target prices shared by various brokerage firms and is for informational purposes only. It should not be construed as investment advice or a recommendation to buy, sell, or hold any stock. Readers are advised to conduct their own research and seek independent financial advice before making any investment decisions. Neither the publication nor the author is responsible for any investment actions taken based on this information.
