On Friday, Infosys (NS:INFY) Ltd. (INFO:IN) (NYSE: INFY) saw its price target increased to INR2,050.00, up from INR1,750.00, by Kotak, while the firm maintained a Buy rating on the stock.
The upgrade follows Infosys' report of a robust fiscal quarter, showcasing a broad-based sequential growth of 3.6%. The company has also revised its FY2025 growth guidance upwards to 3-4%, an increase from the previous 1-3%.
The improved forecast is attributed to several factors, including strong total contract value (TCV) of deals, robust free cash flow (FCF) generation, and a reduction in the cost of software packages used for service delivery to clients. These positive developments were noted alongside certain one-time factors that influenced the company's performance, including growth, margins, and cash flows.
Infosys has demonstrated recovery from a less dynamic FY2024, indicating that it is on the right path for future growth. The firm's analysis suggests that Infosys is positioning itself to benefit from a potential upturn in discretionary spending.
Kotak's updated fair value (FV) of Rs2,050 reflects confidence in Infosys' strategic direction and its ability to capitalize on market opportunities. The company's recent performance and upwardly revised growth projections have contributed to this optimistic outlook for the stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.