Infosys Limited Receives a Rating Update from a Top Analyst

By Jason Carr

Oppenheimer analyst Glenn Greene maintained a Hold rating on Infosys Limited (NYSE: INFY) today. The company’s shares closed yesterday at $17.27, close to its 52-week high of $17.37.

Greene said:

“Infosys reported directionally in-line 3QFY18 results with Q/Q revenue growth of 1% (0.8% in constant currency) to $2.755B (vs. our/Street’s $2.74B/$2.79B estimates). EPS (excluding a $0.10 one-time APA benefit) was $0.25 (vs. our/Street’s $0.24/0.26 estimates). INFY maintained its FY18 revenue outlook, which calls for 5.5-6.5% CC growth and 6.5-7.5% reported growth. Notably, Insurance, Banking & Financial Services (IBF) growth moderated, and was essentially flat Q/Q. Also revenue productivity moderated despite modestly higher utilization and an increased skew of faster-growing new software/services (now ~11.6% of revenues). We maintain our Perform rating, and our estimates are under review.”

According to TipRanks.com, Greene is a top 25 analyst with an average return of 22.0% and a 86.6% success rate. Greene covers the Technology sector, focusing on stocks such as Black Knight Financial Services, Automatic Data Processing, and Jack Henry & Associates.

Currently, the analyst consensus on Infosys Limited is Hold and the average price target is $15.67, representing a -9.3% downside.

In a report issued on January 4, Robert W. Baird also reiterated a Hold rating on the stock with a $17 price target.

Infosys Limited’s market cap is currently $39.48B and has a P/E ratio of 17.89. The company has a book value ratio of 3.5633.

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Infosys Ltd. is a consulting, technology and outsourcing company, which provides end-to-end business solutions thereby enabling clients to enhance business performance. The company operates through following segments: Financial Services, Manufacturing, Retail, Consumer packaged goods and Logistics, the Energy & Utilities, Communication & Services, Hi-Tech, Life Sciences, Healthcare & Insurance and All Other. It offers information technology services, engineering Services, consulting Services, BPO services and products and platforms. The company’s end-to-end business solutions include business information technology services, comprising application development and maintenance, independent validation services, infrastructure management, engineering services comprising product engineering and life cycle solutions and business process management; consulting and systems integration services, comprising consulting, enterprise solutions, systems integration and advanced technologies; products, business platforms and solutions to accelerate intellectual property-led innovation, including Finacle, its banking product, which offers solutions to address core banking, mobile banking and e-banking needs of retail, corporate and universal banks worldwide. Infosys was founded by K. Dinesh, S. Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Nandan M. Nilekani, Raghavan N. S., Ashok Arora and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.