Infosys Share Price Jumps on Strong Third Quarter Results; optimistic analysts, check the revised target price

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Infosys stock price soared on Thursday morning, a day after the information technology major reported healthy quarterly results, beating street estimates.

Infosys stock price soared on Thursday morning, a day after the information technology major reported healthy quarterly results, beating street estimates. The Bengaluru-based IT company not only posted strong 12% year-on-year growth in net profit, but also raised its revenue forecast for the fiscal year to 19.5-20% from 16.5-17 .5% earlier. Seeing Infosys’ strong earnings growth, analysts remain bullish on the stock, raising target prices higher for the company. On Thursday morning, Infosys share price rose by 1.62%, trading at Rs 1,908 per share.

Jefferies: Buy
Objective: Rs 2,200

Infosys earnings were above estimates pinned by analysts at Jefferies. The foreign brokerage firm said Infosys’ third-quarter revenue of $4.2 billion, up 7% from the previous quarter in terms of CC on a high basis in the second quarter, was the main surprise. positive. Analysts noted that Infosys’ large bookings increased 18% from the previous quarter to $2.5 billion, but remained in the $2-2.5 billion range over the course of the year. of the last three quarters. “Our price target of Rs 2,200 is based on 33x 12m FWD EPS. Key risks include lower revenue growth, lower margin, unfavorable currency and corporate action,” they added.

Kotak Securities: Buy
Fair value: Rs 2,300

Impressed by the strong results published by Infosys, Kotak Securities raised its revenue estimate by 2 to 3%, thanks to strong growth in IT spending and market share gains. The brokerage also increased Infosys’ BPA FY2022-24E. “Infosys is expected to be well equipped for peak mid-term growth and will be at the forefront of core transformation deals and digital customer journey management… We are increasing our FV to Rs 2,300 from Rs 2,000, valuing the stock at 32X FY2024E EPS (30X in September 2023E EPS earlier),” Kotak Securities said.

HDFC titles: buy
Target price: Rs 2,200

HDFC Securities raised the target price of Infosys shares to Rs 2,200 from Rs 2,100 earlier. HDFC Securities said the growth trajectory remains robust, supported by a strong deal pipeline and wins; widespread momentum in all vertical sectors; operational pivots of offshoring and utilization mitigating the short-term impact of increased outsourcing; and an increase in cooler integration. The IT major is the best choice for HDFC Securities among Tier 1 IT stocks. Infosys is valued at 25.3x FY24E by the brokerage firm.

Prabhudas Lilladher: Buy
Target price: Rs 2,234

In addition to Infosys’ strong increase in revenue, the revised revenue guidance was also seen as positive. “Infosys won 25 major contracts with a TCV of $2.53 billion, up 18% in the quarter with net new contracts at 44% well distributed across verticals. Management mentioned that the overall pipeline is the largest Infy has had in recent times,” Prabhudas Liladher said in a note. The brokerage firm increased its EPS estimates by approximately 1.5%/4.1%/3.1% for fiscal year 22/23/24E, primarily due to higher revenue estimates given the strength of demand. The target price was increased to Rs 2,234 per share.

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