UBS Securities quite positive on IT space

Suresh Mahadevan of UBS Securities is quite positive on IT space due to demand recovery in the US.

Mahadevan told CNBC-TV18, “We are quite positive on the IT space. I know Infosys did disappoint and HCL numbers seemed decent. But overall, our positive view is on demand recovery in the US and as the year goes on, the visibility gets better. Certainly, we are positive on the IT space at this point.”
He further said, “In case of Infosys we had to cut our estimates a bit. We are now close to Rs 169-170 in terms of earnings per share (EPS) for FY14 and our price target is close to Rs 2900 now. But, the risk reward is still favourable in Infosys because the stock did correct sharply.”
“If you take the Rs 169 number, it is trading at 13 times earnings one year forward which around demand recovery is still quite attractive. HCL has just come out so we did not have the chance to change our numbers but the numbers look good,” Mahadevan added.