Jefferies has maintained a bullish view on Infosys, one of India’s leading IT services company, maintaining a ‘Buy’ rating with an 11% upside and a target price of Rs 1,650 per share.
Despite acknowledging near-term challenges, Jefferies underscores its confidence in Infosys’s potential for growth. The management’s acknowledgment of muted near-term growth is balanced by the assurance that robust deal bookings in the first half of FY24 should provide support and contribute to growth in FY25.
Moreover, Infosys’s management remains unwavering in its confidence regarding the long-term growth prospects of the company. Despite the acknowledgment of near-term challenges, the leadership is optimistic about the positive impact of Generation AI (gen-AI) on the business, considering it a net positive.
The embrace of artificial intelligence and its potential applications is seen as a strategic move that aligns with the company’s vision for sustained growth in the evolving technology landscape.
In the wake of recent senior management churn, Jefferies notes that Infosys retains confidence in its execution capabilities. The company appears resolute in its commitment to overcoming challenges and maintaining a trajectory of growth. The assurance from the management underscores Infosys’s resilience and its ability to navigate changes in leadership effectively.