Infosys Q2 Results | Brokerages raise price targets after earnings beat. #Q2WithBQ Read more:
Shares of Infosys Ltd. gained after analysts maintained bullish ratings and increased target prices on the stock as Indias second-largest software services provider beat earnings estimates and raised full-year growth forecasts.
Buoyed by deal wins worth $2.1 billion (about Rs 15,800 crore at Thursdays exchange rate) in the quarter ended September, Infosys raised its revenue growth estimate to 16.5-17.5% for the ongoing fiscal from 14-16% earlier. It, however, maintained operating profit margin forecast at 22-24%.
Shares of Infosys gained as much as 4.3%, to Rs 1,783.6 apiece. Of the 49 analysts tracking the company, 44 have a ‘buy’ rating, two suggest a ‘hold’ and three recommend a ‘sell’, according to Bloomberg data. The 12-month consensus price target implies upside of 13%.
Partial wage hikes for senior employees and intervention for selective skill sets, continued increase in attrition and higher backfilling costs, and higher travel expenses are key margin headwinds.