"Infosys has been outperforming peers over the past few quarters due to ramp-up of large deals, which has been missing in the past few quarters," said Antique Stock Broking. "We may see deal momentum coming back in FY23 and forecast Infosys' mediu...
By ET Bureau | Updated:
Agencies
Some brokerages have trimmed their target price on Infosys after the information technology major's June quarter profit fell short of analysts' estimates. Shares of Infosys ended down 0.23% at ₹1,502.85 on Monday.
Prabhudas Lilladher has trimmed the target price to ₹1,630 from ₹1,646, IDBI Capital has downgraded the stock to 'hold' from a 'buy' with a revised target price of ₹1,510, and Antique Stock Broking has lowered the target price to ₹2,050 from ₹2,100. ICICI Securities has lowered target price to ₹1,434 from ₹1,464.
Most brokerages have maintained a bullish recommendation on the stock.
"Infosys has been outperforming peers over the past few quarters due to ramp-up of large deals, which has been missing in the past few quarters," said Antique Stock Broking. "We may see deal momentum coming back in FY23 and forecast Infosys' medium-term growth to be similar to TCS and expect the pay-out ratio to improve gradually," said Antique.
Analysts said the lowering of margin guidance is negative.
"There are certain pockets of weakness in retail and mortgage which will dent revenues in the longer run. In addition, lowering of margin guidance is another dampener. This coupled with macro-economic issues prompt us to be cautious on the stock," said IDBI Capital.
Stock market news: Infosys share price trades flat
