Global Brokerage Sees 14% Upside From This IT Major's Stock—Shares Gain
Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

Congratulations!
You have successfully subscribed.

Infosys shares ticked up on Monday after Morgan Stanley struck a positive note on the IT major and broader market sentiment was upbeat.

What Happened: Infosys maintained an “overweight” rating on the stock ahead of the company’s quarterly earnings announcement.

Morgan Stanley anticipates the fourth-quarter earnings data and fiscal year 2025 revenue guidance to act as significant catalysts for the stock. With a target price of ₹1,700 per share, the brokerage suggests a potential upside of 13.48% from its previous closing price.

See Also: Adani Ports Shares Hits All-Time High After Beating FY24 Guidance

The Infosys Thesis: In Morgan Stanley’s base case scenario, Infosys is expected to offer a 3-6% revenue growth guidance in constant currency terms. The brokerage said the firm’s growth outlook is optimistic, driven by robust deal wins in fiscal year 2024 and a projected rebound in the latter half of the year, which could translate into improved revenue conversion.

Morgan Stanley’s recent target price adjustments for leading IT services firms, including Infosys, signify its bullish stance on the sector’s prospects. Despite elevated valuation multiples, the brokerage remains positive about the IT sector’s outlook.

Price Action: Infosys’s share price was up 0.56% at ₹1,506.20 in early trade on Monday. Over the past six months, Infosys shares have clocked a modest 6.3% increase, lagging behind India’s benchmark indices’ gains of around 14%.

Read Next: Why Shares Of This Railway Stock Are Up 4% Today

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Comments
Loading...
EquitiesLarge CapNewsPrice TargetReiterationMarketsAnalyst RatingsMoversTrading Ideasinfosys