Buy Infosys, target Rs 1,200: Motilal Oswal Securities

Motilal Oswal Securities has a buy call on Infosys with a target price of Rs 1,200.

The current market price of Infosys is Rs 1,037.60.

Time period given by the brokerage firm is 'Long Term' when Infosys price can reach defined target.

The brokerage firm said, "For INFO, we expect USD revenue CAGR of 8 per cent and EPS CAGR of 7.1 per cent over FY17-20E. Lower earnings CAGR is a function of a 90bp decline in profitability and slight strengthening of the Indian currency. However, we do not expect INFO’s performance to lag peers materially, especially after the company having swiftly addressed the heightened issues around governance with the appointment of Mr Nilekani to the Board and Mr Salil Parekh as the CEO. Our price target of Rs 1,200 discounts forward earnings by 16x, implying an upside of 15 per cent. Maintain Buy."