Credit Suisse believes that Infosys is staring at a weaker H2 amid softness in key large verticals and base effect.
Share price of IT major Infosys jumped over 2 percent intraday on September 24 and was one of the top gainers from the IT space. Meanwhile, the Rupee opened higher by 15 paise at 70.78 per dollar on Tuesday against the previous close of 70.93.
However, global research firm Credit Suisse has maintained an underperform rating on the stock with target raised to Rs 690 from Rs 670 per share. The firm believes that Infosys is staring at a weaker H2 amid softness in key large verticals and base effect.
"Organic revenue growth may moderate to 8 percent in Q4 from 12 percent in Q1 while forex may become a headwind in the near term. Infosys' discount to TCS is now just 10 percent and is expected to widen to 15-20 percent, the research firm said.
Credit Suisse has trimmed growth estimate for FY21/22 by 200 bps.
At 0958 hrs, Infosys was quoting at Rs 782.00, up Rs 16.90, or 2.21 percent. It has touched an intraday high of Rs 784.60 and an intraday low of Rs 766.00.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
