Hold Infosys; target Rs 3550: ICICIdirect.com
Brokerage house ICICIdirect.com has recommended hold rating on Infosys with a target price of Rs 3550, in its October 11, 2013 research report.
October 15, 2013 / 13:01 IST
ICICIdirect.com's report on Infosys
"Infosys reported Q2FY14 earnings, which were generally ahead of our and consensus estimates led by broad based growth across verticals, geos and services lines. Volumes were ok but price realisation (+60 bps QoQ) improvement was heartening. The company chose to remain cautious by not raising the upper end of its 6-10 percent dollar revenue growth guidance. However, H1FY14 $ revenues are up 14 percent YoY and zero growth in H2 yields 10.7 percent YoY growth. This implies the guidance is extremely conservative – given it has signed five large deals (2 in US, 2 in Europe, 1 in RoW) worth ~$450 million TCV in Q2FY14 – and Infy could beat the top-end effortlessly.""A case for multiple re-rating exists given consecutive earnings surprises coupled with weak rupee have led to estimate revision (FY13-15E revenues, EPS CAGR of 18.5 percent, 12.5 percent vs. 9.1 percent, 4.8 percent earlier). We value Infosys at Rs 3,550 i.e. at 17x FY15E EPS. The target multiple is in-line with its five-year average and 15 percent discount to TCS’ multiple," says ICICIdirect.com research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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