UBS has raised price target on India’s second-largest software services exporter Infosys Ltd to Rs 865 from Rs 737.50, maintaining “buy” rating on the stock.
“Expect revenue acceleration in FY19, driven by an easing drag from retail and a modest improvement in banking in Q2-4 FY19,” UBS analysts write in a note.
Market still wary of expecting meaningful medium-term revenue acceleration for Infosys, and the stock’s recent rally is largely led by depreciating rupee, UBS adds.
Attrition remains a challenge, senior management retention is key, given loss of two business unit heads in six months, UBS says.
Positive contract win momentum in FY19 likely to be a lead indicator of revenue pick-up, UBS further says.
Thirty-four of 45 brokerages rate the stock “buy” or higher, eight “hold” and three “sell” or lower; their median price target is Rs 710, according to Thomson Reuters Eikon data.
Infosys stock has risen over 41 percent this year as of last close. At 10.20 am, shares traded at Rs 742.60, up by 1.55 percent, after opening at Rs 735.9. Nearly 19.8 lakh shares have changed hands on the NSE.
Nifty IT traded higher by 0.22 percent with as many as 6 stocks advancing against 4 declines.
Benchmark indexes traded mildly lower with the BSE Sensex lower by nearly 30 points to trade at 37,898 and the Nifty50 trading in the red at 10,432.
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First Published: IST