CLSA Reiterates "Hold" Rating for Infosys (NYSE:INFY)

Key Points

• CLSA reaffirmed its “Hold” rating on Infosys, while broader analyst sentiment remains cautious: nine analysts rate the stock Hold and two rate it Sell. The consensus rating is “Reduce,” with an average price target of $11.63.
• Infosys shares rose 1.1% to $11.96, but remain well below their 52-week high of $30.00. The stock’s 50-day and 200-day moving averages are $11.50 and $12.96, respectively.
• The company’s latest quarterly results fell short of expectations, reporting $0.20 EPS versus a $0.21 estimate and revenue of $4.99 billion versus $5.08 billion expected. Institutional investors own 16.2% of the company.

Infosys (NYSE:INFY - Get Free Report)'s stock had its "hold" rating reaffirmed by research analysts at CLSA in a research note issued to investors on Wednesday, MarketBeat Ratings reports.

A number of other research firms have also commented on INFY. HSBC set a $11.47 price objective on shares of Infosys and gave the stock a "hold" rating in a research note on Friday, July 24th. Susquehanna reduced their price objective on Infosys from $12.00 to $11.00 and set a "neutral" rating for the company in a research note on Friday, July 24th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $10.90 target price (down from $12.70) on shares of Infosys in a research note on Friday, July 24th. TD Cowen reiterated a "hold" rating and issued a $9.00 price objective (down from $10.00) on shares of Infosys in a research note on Friday, July 24th. Finally, BMO Capital Markets reiterated a "market perform" rating and issued a $12.00 target price (down from $13.00) on shares of Infosys in a research report on Friday, July 24th. Nine investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $11.63.

Infosys Trading Up 1.1%

INFY traded up $0.14 on Wednesday, hitting $11.96. 2,173,676 shares of the company's stock were exchanged, compared to its average volume of 19,061,551. The stock has a fifty day moving average of $11.50 and a two-hundred day moving average of $12.96. Infosys has a twelve month low of $10.30 and a twelve month high of $30.00. The firm has a market cap of $48.42 billion, a PE ratio of 14.81, a P/E/G ratio of 2.82 and a beta of 0.88.

Infosys (NYSE:INFY - Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The technology company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.21 by ($0.01). The business had revenue of $4.99 billion during the quarter, compared to the consensus estimate of $5.08 billion. Infosys had a return on equity of 33.91% and a net margin of 16.38%. On average, analysts predict that Infosys will post 0.81 EPS for the current year.

Institutional Investors Weigh In On Infosys

Several hedge funds and other institutional investors have recently added to or reduced their stakes in INFY. Public Employees Retirement System of Ohio bought a new position in Infosys in the second quarter valued at about $23,235,000. Laidlaw Wealth Management LLC bought a new stake in Infosys during the 2nd quarter worth about $117,000. ABN AMRO Bank N.V. acquired a new position in Infosys during the 2nd quarter valued at about $168,000. Oldfield Partners LLP boosted its stake in shares of Infosys by 41.3% in the 2nd quarter. Oldfield Partners LLP now owns 53,193 shares of the technology company's stock valued at $558,000 after purchasing an additional 15,560 shares during the last quarter. Finally, E. Ohman J or Asset Management AB boosted its stake in shares of Infosys by 3.7% in the 2nd quarter. E. Ohman J or Asset Management AB now owns 251,900 shares of the technology company's stock valued at $2,642,000 after purchasing an additional 9,000 shares during the last quarter. Institutional investors and hedge funds own 16.20% of the company's stock.

About Infosys

Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.

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