Infosys to outperform peers, weathers global gloom better: Morgan Stanley

NEW DELHI: Morgan Stanley is overweight on Infosys because despite weakened global environment and seasonal weakness in December the tech firm has so far not seen any material price cuts or project cancellations in its core business.

"Given the steep cross-currency impact for peers (-1.5 percent to -2 percent), Infosys' second half revenue growth rate quarter-on-quarter is likely to outperform industry peers even if it reports towards the lower end of its guidance range," Morgan Stanley said in a note.

Overall revenue growth is likely to remain healthy relative to the environment and rupee depreciation would further cushion margins and earnings, it added. The investment banker maintained 'overweight' rating on the stock with a price target of Rs 3,630.

At 12.55 p.m shares were at Rs 2,763.80 up 0.42 percent.

Wipro best bet among Tier-I IT companies: Jefferies

Among tier-1 Indian IT companies, Jefferies prefers Wipro mainly due to valuation discount of 20 percent versus the other tech giant, TCS.

With expectations at moderate levels and valuation discount of 20 percent versus Tata Consultancy Services, we are buyers in Wipro, Jefferies said in a note.

The research house said Wipro remained a high quality company and with growth normalising over the coming quarters, the steep discount is likely to narrow and has a 'buy' rating with a target price of Rs 430.