Brokerages bullish on Infosys after September quarter result

Mumbai: Brokerages have maintained buy rating and raised target price on Infosys after better-than-expected September quarter result.

CLSA has maintained buy and raised target price to Rs 1330 from Rs 1180. Maybank Kim Eng Securities has raised the target price by 17% to Rs 1350. Haitong Securities has raised target price by 36% to Rs 1285 while retaining outperform rating. Macquarie has raised target price to Rs 1410 from Rs 1140 while retaining outperform rating.

"Infosys' second quarter results should sustain investors' confidence in the strength of the earnings growth momentum in the sector that has fuelled a 43% outperformance against the Nifty IT index over the past six months," said CLSA.

Macquarie said it expected Infosys to raise revenue growth guidance for FY21 but the company has surprised by upgrading even its EBIT margin band.

HSBC, which maintained buy rating on Infosys and raised target price to Rs 1295 from Rs 1085, said industry tailwinds and market share gains will continue to drive Infosys' outperformance in FY22 and FY23.

Strong deal signings provides good visibility on rest of the year while deal pipeline stays strong, led by vendor consolidation opportunities, said Bank of America Securities, raising target price on the stock to Es 1275 from Rs 1110. BofA Securities said recent acquisitions, SaaS partnerships and its cloud suite increase pivot to high growth segments.