Jefferies has reiterated its ‘Buy’ rating on Infosys even as it trims the target price to ₹1,835 from ₹2,150, citing near-term growth concerns amid a potentially softening US macro environment. The brokerage notes that Infosys has seen a ~20% correction in stock price, which reflects investor concerns about weakening demand, especially in discretionary IT spends.
Despite the cautious macro backdrop, Jefferies estimates Infosys will still deliver constant currency (cc) revenue growth of 4-6% in FY26, even if discretionary spending doesn’t rebound. Furthermore, the brokerage sees limited downside risk to valuations as price-to-earnings (PE) multiples are supported by improved free cash flow (FCF) conversion and a consistent payout policy.
Jefferies has reduced its FY25–27 EPS forecasts by 2–4% in anticipation of slower topline growth but maintains that the overall risk-reward remains attractive. The stock’s current valuation offers a compelling entry point for long-term investors as the IT giant continues to optimize its cost base and strengthen its delivery capabilities across verticals.
