Brokerages Raise Price Targets On Infosys After Q3 Results
Analysts raised price targets and earnings estimates for Infosys Ltd. after India’s second-largest software services provider beat forecasts in the third quarter and hiked revenue and margin guidance for the ongoing fiscal.
The company’s revenue rose 5.5% over the preceding quarter to Rs 25,927 crore in the October-December period. Its dollar revenue increased 6.2%. Infosys’ operating margin remained steady at 25.4% against 25.3% despite wage hikes and cross-currency headwinds.
Infosys now expects FY21 revenue to grow at 4.5-5% compared with 2-3% growth forecast earlier. It has also hiked operating margin guidance to 24-24.5% from 23-24% predicted previously.
The company, in a media statement, said large deal total contract value was at all time high of $7.13 billion.
According to analysts, a faster and stronger recovery of the global economy after Covid-19, higher-than-expected revenue and margin growth, along with favourable currency movement, are some of the key catalysts for the stock.
Shares recovered from the day's low after declining as much as 5% to Rs 1,318. The stock currently trades 0.7% lower at Rs 1,377. Of the 47 analysts tracking Infosys, 41 have a ‘buy’ rating, five suggest a ‘hold’ and one recommends a ‘sell’.
Here’s what analysts have to say: