The global investment firm said Infosys may see another $2 billion worth of deal booking this quarter, making this its strongest close in six years
Global brokerage house CLSA has retained its buy call on software firm Infosys with a price target at Rs 930 per share, implying 22 percent potential upside from current levels, on expected stable earnings growth in March quarter.
Technology has been one of the strongest sectors in the last one year due to rupee depreciation and strong US economy. Infosys itself has rallied 37 percent in one year period.
CLSA expects the country's second largest IT company to post 2 percent sequential revenue growth in constant currency, but margin may dip 30 basis points in the quarter ended March 2019.
The fall in margin is expected due to forex headwinds and investments, but margin pressure from supply crunch may be offset by operating leverage, the brokerage said.
On deals, the global investment firm said Infosys may see another $2 billion worth of deal booking this quarter, making this its strongest close in six years.
"Company should see a 3.6 percent exit rate into FY20 and inspire 9-11 percent constant currency YoY revenue growth guidance," CLSA said, adding, Infosys is poised to become the fastest growing large IT services firm in FY20.
Infosys will announce its March quarter and full year earnings on April 12.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.