Infosys shares rise nearly 3% despite Jefferies' 15% target price cut

nfosys' share price has slipped over 13 percent year-to-date. The stock is trading 19 percent lower from its December 2024 peak of Rs 2,006.45, with concerns over a potential slowdown in US economic growth weighing on sentiment.

Shares of information technology major Infosys climbed nearly 3 percent to Rs1,634 in morning trade on March 25, as a softer stance on tariffs from US President Donald Trump fueled investor optimism, driving renewed buying interest in IT stocks.

The rally comes despite Jefferies lowering its price target by 15 percent to Rs 1,835 from Rs 2,150 while reiterating its ‘Buy’ rating. The revised target now suggests a 15 percent upside from the last close—down from the earlier potential of 35 percent.

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However, Jefferies believes the risk of a valuation downgrade is limited, citing strong free cash flow conversion and improved payouts. The brokerage forecasts constant currency revenue growth of 4-6 percent in FY26, even if discretionary spending remains weak.

On March 12, Motilal Oswal Financial Services downgraded the stock to 'Neutral' and said that global geopolitical uncertainties coupled with the threat of possible trade war triggered by US President Donald Trump's tariffs are weighing on the stability of the IT sector. "Sentiment has turned cautious, with enterprises taking a 'wait-and-watch' stance," Motilal Oswal said.

Also read: Markets rise for 7th day: Sensex jumps 750 pts, Nifty over 23,850 as IT stocks surge

Similarly, Morgan Stanley downgraded Infosys to equal weight and cut target price to Rs 1,740 per share from the earlier Rs 2,150 per share, citing concerns over slowing growth. This marked the first downgrade in at least four years, during which the brokerage consistently maintained an 'Overweight' rating.

On the earnings front, Infosys posted an 11.4 percent year-on-year rise in Q3 FY25 net profit to Rs 6,806 crore, beating estimates. Revenue climbed 7.5 percent to Rs 41,764 crore, surpassing expectations pegged at Rs 41,206 crore, according to a Moneycontrol poll of analysts.

Read more: Subdued cash volumes reflect investor caution even as Sensex, Nifty extend the rebound

At about 10:20 am, shares of the company were trading at Rs 1,629, higher by 2.3 percent from the last close on the NSE. Infosys' share price has slipped over 13 percent year-to-date. The stock is trading 19 percent lower from its December 2024 peak of Rs 2,006.45, with concerns over a potential slowdown in US economic growth weighing on sentiment.