Buy Infosys, target of Rs 3020: Angel Broking

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Buy Infosys, target of Rs 3020: Angel Broking

Angel Broking has recommended a buy rating on Infosys Technologies, with price target of Rs 3020.

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ALSO READ See previous views by Angel Broking See what other Experts & Brokerages are saying about Infosys See messages about Infosys Infosys BSE | NSE 31/05/12 Are Mutual Funds betting on Infosys?

Angel Broking has recommended a buy rating on Infosys Technologies , with price target of Rs 3020, in its report dated December 16, 2009. The stock closed at Rs 2526.50 on December 19, 2009.

"Infosys has always focused on organic growth, maintaining its profitability and creating shareholders value, which the company achieved even during the global economic turmoil in FY2009. We believe the company is well poised to take advantage of the upcoming opportunities and face the challenges through its novel business plans and quality manpower. While the Infosys management at the analyst meet did indicate that near-term pressure on IT Budgets is expected to continue, we remain confident of the fact that in-line with the global economic recovery, demand for Indian IT services will be back to the forefront and companies like Infosys stand to benefit in particular on account of the availability of talent and delivery from a low-cost base. Thus, considering the above and the increasing focus of the company on non-linear initiatives along with its strategy to focus on newer geographies and services, we remain positive on the company. In this note, we also introduce our FY2012 estimates for Infosys and roll over our target price on FY2012 basis. At the CMP, Infosys trades at 21.7x its FY2011E EPS and 18.5x its FY2012E EPS, which leaves room for further upside. Thus, we recommend a BUY on the stock with a 15-month Target Price of Rs 3,020 (Rs 2,475), valuing the stock at 22x its FY2012E EPS," says Angel Broking report.

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To read the full report click on the attachment