With a 'Buy' rating and a target price of Rs 1,650 per share, Jefferies maintains a strong attitude on Infosys, one of India's largest IT services businesses.
Despite conceding short-term difficulties, Jefferies emphasizes its confidence in Infosys's long-term prospects. Although the management accepts decreased near-term growth, it ensures that strong deal bookings in the first half of FY24 would provide support and contribute to growth in FY25.
In the short term, Infosys has been dealing with the effects of a difficult business climate. Jefferies, on the other hand, remains upbeat, citing high deal bookings as a significant driver that could fuel growth in the coming fiscal year. The capacity of the company to secure large deals in the first half of FY24 sets it well for future success.
Furthermore, Infosys' management is firm in its belief in the company's long-term growth prospects. Despite acknowledging near-term concerns, the leadership is hopeful about Generation AI's (gen-AI) good influence on the business, viewing it as a net positive.
The company's adoption of artificial intelligence and its possible uses is viewed as a strategic decision that matches with the company's aim for long-term growth in a changing technology landscape.
Despite recent senior management turnover, Jefferies reports that Infosys remains confident in its execution ability. Infosys appears steadfast in its determination to overcome obstacles and sustain its growth trajectory. The assurance from management demonstrates Infosys's resilience and capacity to efficiently navigate leadership changes.
