Infosys, one of India’s leading IT services companies, recently underwent a review by several prominent financial institutions, resulting in mixed opinions on the stock’s performance.
JPM maintained an overweight rating on Infosys but cut its target price to Rs 1700. Despite an unimpressive headline, JPM highlighted the strong support from cost-take out signings, cyclical recovery credentials, and dividend/buyback yield.
On the other hand, CLSA downgraded Infosys to neutral and reduced its target price to Rs 1553, citing weakness across key verticals and a cut in earnings estimates for FY25/26.
Jefferies, while maintaining a buy rating, also lowered its target price to Rs 1630 after Infosys missed fourth-quarter estimates. However, strong deal wins provided some comfort, leading Jefferies to expect a 9% EPS CAGR over FY24-27.
CITI and Nomura both downgraded Infosys to neutral, with CITI cutting its target price to Rs 1550 and Nomura reducing it to Rs 1400. Lowered earnings estimates and weaker-than-expected guidance for FY25 were cited as reasons for the downgrades.
In contrast, Bajaj Auto received positive reviews from analysts, with JPM and Jefferies raising their target prices following a strong fourth quarter. Management commentary and performance metrics were highlighted as key drivers for the stock’s upward trajectory.
Overall, the reviews on Infosys and Bajaj Auto reflect the diverse opinions of analysts on the companies’ future prospects. Investors will need to carefully consider the various factors highlighted in the reviews before making any investment decisions.
