Bank of America Securities analyst Kunal Tayal reiterated a Buy rating on Infosys Limited (INFY – Research Report) on March 10 and set a price target of INR2,150.00.
Kunal Tayal has given his Buy rating due to a combination of factors that reflect a positive outlook for Infosys Limited. The company is experiencing a favorable demand environment, particularly in sectors such as BFSI and US retail, despite some uncertainties related to tariffs and policy changes in the US. Infosys has managed to maintain its growth trajectory through an increased focus on small deals, which have shown significant improvement, especially in areas like cloud services.
Furthermore, Infosys has demonstrated strong execution capabilities, as evidenced by a 50 basis point year-over-year margin expansion, driven by project Maximus. The company is also well-positioned to capitalize on new opportunities arising from advancements in AI, which are expected to offset any deflationary impacts in traditional service areas. Additionally, Infosys has achieved a 3.6% increase in pricing for new large deals, indicating robust demand and pricing power in its core business areas.
According to TipRanks, Tayal is a 4-star analyst with an average return of 9.7% and a 52.94% success rate. Tayal covers the Technology sector, focusing on stocks such as Exlservice Holdings, Genpact, and Infosys.
In another report released on March 7, CLSA also upgraded the stock to a Buy with a INR1,978.00 price target.
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