Moneycontrol Bureau
Infosys stock jumped to a record high of Rs 3,674.40 on Monday as brokerage houses raised target price on the stock after it announced December quarter earnings.
JP Morgan is overweight on the erstwhile IT bellwether and raised target price to Rs 4,000 from Rs 3,800 saying that the company can exceed earnings per share expectation for next two quarters. However, the brokerage house said Infosys is not a 'story without risks'.
Barclays maintained overweight rating with a target price of Rs 4,150 apiece.
"Infosys continued with its string of 'beat and raise' quarters with another guidance increase post Q3 results. We maintain earnings per share estimates (13 percent/20 percent ahead of pre-result consensus FY14/15 numbers)," Barclays report said.
Meanwhile, Credit Suisse and Deutsche Bank raised target price on the stock to Rs 3,800. Deutsche Bank suggests to hold the stock, but feels that improving sales growth still remains a challenge.
Infosys' consolidated net profit rose 19.4 percent quarter-on-quarter to Rs 2,875 crore in the quarter ended December 2013.
Consolidated revenue increased 0.47 percent sequentially (up 25 percent Y-o-Y), in-line, to Rs 13,026 crore and dollar revenue climbed 1.6 percent Q-o-Q to USD 2,100 million in the quarter gone by.
The IT exporter raised its full year (FY14) dollar revenue guidance to 11.5-12 percent from 9-10 percent earlier, which was largely in-line with analysts' expectations of 11-12 percent.
At 12:02 hours IST, the stock was trading at Rs 3,670.95, up 3.44 percent today, in addition to a 2.82 percent rally in earlier session.
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