Infosys failed to fuel investor sentiment post its Q4 FY18 result on April 13. However, most brokerages are convinced that the best is yet to come for India’s second largest IT services exporter.
Infosys, which saw its shares fall by nearly four percent post announcement of its Q4 result, is on a recovery path as highlighted by its management at the analyst meeting held on April 23.
Most brokerage which attended the analysts meet is convinced that the best is yet to come for the IT major and see up to 20 percent upside from current levels.
The most aggressive target for Infosys was set by Edelweiss Securities which sees the stock rallying to Rs 1,419 levels, an upside of 19.04 percent from Monday’s closing price of Rs 1,192 per share. “We believe Infosys’ new leadership is refining the strategy from where the previous CEO left. Thrust remains on design thinking, artificial intelligence and digital, albeit with quick realignment to where clients’ spends are shifting,” the report stated.
Motilal Oswal maintains a buy rating on Infosys with a target price of Rs 1330. The management highlighted a granular strategy articulated around digital, core business, sales as well as talent acquisition.
The company cited that the current financial year will be a year of stabilization. The next financial year will be a year of momentum building and the financial year-ending March 2021 will be a year of acceleration.