Buy Infosys; target of Rs 2850: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Infosys and has recommended buy rating on the stock with a target of Rs 2850 in its August 21, 2012 research report.

Infosys, Albama Court has given verdict in favor of Infosys. We see this is as a positive step corroborating Infosys stading of no wrong-doing. The ruling includes costs against Palmer and didn’t condone Infosys for any conduct. We see the verdict to alleviate one of the biggest concern on the stock performance. The US court gave ruling in favor of Infosys in Jack “ay Palmer Jr. vs Infosys Limited case..

“Judge Myron H. Thompson of federal court for the Middle District of Alabama ruled that the allegations by the whistle-blower, Jack Palmer, did not meet the standard under Alabama law for a worker to claim negligent or outrageous mistreatment by an employer. The judge found in favor of Infosys on all six civil claims Mr. Palmer presented. Judge Thompson further ordered costs against Palmer. It is further ordered that costs are taxed against plaintiff Palmer, for which execution may issue, Judge Thompson said in his order. Judge Thompson noted that his decision was limited to employment issues and did not touch on Mr. Palmer’s visa accusations. Federal authorities in Texas are conducting a criminal investigation of Infosys’s visa practices. The company has strongly denied that it had any corporate policy of improper use of visas for Indian workers.”

“Verdict in favor of Infosys would help the company to look forward with its strategy. The case was one of the biggest overhangs on the stock performance. Although, the investigation in visa case is still on, but Infosys has denied any deliberate wrong-doing in visa case as well. Buy the stock with a target of Rs 2850, “says Prabhudas Lilladher research report.

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