Brokerages have maintained bullish view on Infosys after the IT major on Friday posted better-than-expected performance for the three months ended December.
Analysts have either raised their price targets or maintained them on the stock.The company posted 23.49 per cent yearon-year rise in profit at Rs 4,457 crore compared with Rs 3,609 crore posted for the same quarter last year.
This was higher than ETNow poll estimate of Rs 4,204.50 crore.The company raised FY20 constant currency revenue guidance to 10-10.5 per cent compared to 9-10 per cent earlier.
The investigation into the recent whistle-blower allegations concluded with no evidence of wrong-doing found against the company, CEO and CFO, which analysts said is a relief.
Shares of Infosys ended up 1.5 per cent at Rs 738.25 on Friday.Upgraded guidance and investigation outcome should be well received by the market, said UBS.Kotak Institutional Equities said Infosys is well-positioned to grow at a level similar to or faster than peers.Axis Capital has raised target price to Rs 820 from Rs 810 after rolling forward estimates, but maintained add rating.We believe that the clean chit for the management would clear the decks to bring focus back on business.
Moreover, we believe Infosys revenue growth performance would be superior to that of TCS.
We see Infosys margin trajectory to improve gradually as the investment phase comes to an end, whereas TCS would continue to see margin pressure due to sustained pricing pressure on legacy, said Axis Capital.Goldman Sachs has maintained neutral rating as it expects Infosys key industry verticals BFSI and retail to see cyclical slowdown in FY21 and the base for comparables continues to get more challenging, particularly over the next three quarters going into the US elections.