Infosys Limited (INFY) Receives a Rating Update from a Top Analyst

Oppenheimer analyst Glenn Greene maintained a Hold rating on Infosys Limited (INFYResearch Report) today. The company’s shares closed yesterday at $10.97, close to its 52-week high of $11.38.

Greene wrote:

“Infosys reported mixed 4QFY19 results with 2% CC Q/Q revenue growth to $3.06B (vs. our $3.06B estimate) while operating margins of 21.5% were 150bps below our 23% estimate. EPS of $0.13 compares with our/Street’s $0.14/0.13 estimates. Notably, INFY provided its FY20 outlook, which anticipates 7.5-9.5% CC revenue growth and 21-23% operating margins (we had modeled >23%). Also, Financial Services disappointingly fell 80bps Q/Q in CC. INFY saw strong large-deal signings (>$1.5B in 4Q), and faster-growing digital services now represent ~34% of revenues, up 41% Y/Y. 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 19.9% and a 85.3% success rate. Greene covers the Technology sector, focusing on stocks such as Jack Henry & Associates, Fidelity National Info, and Total System Services.

Infosys Limited has an analyst consensus of Hold, with a price target consensus of $10.90, a -0.6% downside from current levels. In a report issued on April 2, HSBC also downgraded the stock to Hold.

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Based on Infosys Limited’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $508 million. In comparison, last year the company had a net profit of $571 million.

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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.

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