Brokerages Raise Price Targets On Infosys After Q3 Results
The Infosys Ltd. logo is displayed on security tape at the company’s campus in Electronics City in Bangalore, India. (Photographer: Vivek Prakash/Bloomberg)  

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’.

Also read: Infosys Q3 Results: Raises Revenue, Margin Guidance For FY21

Here’s what analysts have to say:

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