Cautious Outlook on Infosys Amid Uncertain U.S. Policy and Growth Prospects

Infosys (INFY – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Bryan Bergin from TD Cowen maintained a Hold rating on the stock and has a $21.00 price target.

Bryan Bergin has given his Hold rating due to a combination of factors that reflect the current state of Infosys’s business environment. The discussions with Infosys’s CFO and IR highlighted a steady demand outlook, though the influence of U.S. government policies remains uncertain, particularly concerning discretionary spending. The company sees potential in areas like GenAI, but the timing of revenue realization is still unclear, which adds a layer of uncertainty to future growth prospects.
Additionally, while there are pockets of improvement in financial services, especially in the U.S. and Europe, the overall market focus remains on cost reduction deals. The volatility in U.S. government policy, particularly under the Trump administration, adds to the unpredictability, making it challenging to assess its impact on Infosys’s operations. As a result, Bryan Bergin maintains his estimates and price target, suggesting a cautious approach with a Hold rating.