Morgan Stanley has maintained its equal-weight rating on Infosys with a target price of ₹1,700 following the company’s announcement of a joint venture with Telstra in Australia. The JV builds on the existing collaboration between the two companies and includes Versent Group, which has a strong client base across government, education, financial services, energy, and utilities sectors.
The brokerage said the deal strengthens Infosys’ local presence in the Australian market and complements its strategic push in digital transformation services. It added that the price paid for the stake is not considered expensive, and assuming a high single-digit margin profile, the JV is not expected to dilute earnings per share.
Morgan Stanley noted that while the transaction is strategically positive, it remains neutral on the stock due to valuation considerations and a balanced risk-reward profile at current levels.
Disclaimer: The views and recommendations made in this article are those of Morgan Stanley. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
