Credit Suisse cuts Infosys price target by 7% to Rs 2,500/share

MUMBAI: Credit Suisse has cut its price target for Infosys to Rs 2,500 from Rs 2,700, while maintaining its neutral rating as it cut 2012-13 and 2013-14 earnings per share estimates by 3-4%.

"While valuations may protect downside, we think that business momentum needs to improve for the stock to go up and there is no sign of that yet," said Credit Suisse analysts Anantha Narayan and Sagar Rastogi in a note to clients.

At 1:30 PM on Friday, Infosys shares were down 0.7% at Rs 2,248.60.

"We now value the stock at 13x (times) 24-month forward EPS from 14x earlier as we now expect a larger difference in growth between Infosys and its peers," the analysts said.

"While current valuations of 13x FY14 earnings appear attractive compared to history, we think that improvement in business momentum will be required to drive the stock up," they said.