Infosys Q4 guidance dismal: JP Morgan

MUMBAI: JP Morgan has retained its neutral rating on Infosys Technologies and set a price target of Rs2,800 citing dismal revenue guidance for the quarter March 31, 2012.

"The guidance is particularly disappointing given that 4QFY12 will have an additional working day due to the leap year, which should add about 1.5-1.6% to revenue growth," said Viju K George and Amit Sharma, analysts of JP Morgan, in a note to clients

Infosys forecast dollar revenue growth of 16.4% per cent for the year ending March 31, down from 17.1%-19.1% projected in October.

"The moot point: is this the shape of things to come for FY13 for the sector? The bears will have their say today, but we continue to believe that this is an Infosys-specific issue," the JP Morgan analysts said. Infosys shares were down 8.2% to Rs2,595.45 at 2:55 PM on Thursday.