ICICI Direct is bullish on Infosys has recommended buy rating on the stock with a target price of Rs 1060 in its research report dated April 13, 2017.
ICICI Direct's report on Infosys
Infosys’ dollar revenues grew 0.7% sequentially to $2,569 million, below our 1.7% growth and $2,594.6 million estimate. Constant currency revenues were flat QoQ owing to weaker execution and drag in India geography revenues (declined 6.9% in CC terms) and retail, CPG & Lifesciences (declined 3.1% in CC terms). Going ahead, the management is optimistic about BFSI while retail and hi-tech could see some softness in the coming quarters.
Infosys intends to return part of the cash and recast capital allocation policy that are steps in the right direction towards shareholder value creation. Hence, we maintain our BUY recommendation on the stock. We also roll over to FY19E and revise our target price to Rs 1060 (15x FY19E).
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