Infosys likely to touch 2900 in next 9-12 months: CLSA

NEW DELHI: Infosys delivered a positive surprise in its third quarter numbers on revenues front after eight straight quarters on Friday, CLSA said in a note.

Asia Pacific-focused broker expects the IT major to hit higher levels in this year as Infosys is trading at 16x trailing PE which suggests that stock can go up-to Rs2,900 over the next 9-12 months.

The 4.1 per cent QoQ organic growth in USD revenues in the seasonally weaker December quarter is solid even in the best of times and it is creditable that Infosys has delivered this in a challenging environment.

CLSA has ‘underweight’ position in the stock and with the backdrop strong results, we expect stock to continue its up-move even post today’s upmove.

Infosys was trading 13.43 per cent higher at Rs 2632. It has hit a high of Rs 2635 and a low of Rs 2507.90 on the Bombay Stock Exchange at 10:45 am.

“The Lodestone deal has no doubt contributed to the December 2012 revenue growth and margins were broadly in-line with expectations, down 65bpsQQ,” CLSA said in a note.