Infosys Ltd. (NYSE:INFY) Receives Average Rating of "Hold" from Analysts

Key Points

• Infosys has a consensus analyst rating of "Hold" from nine brokerages, with one sell, seven hold, and one buy rating. The average 12-month price target is about $12.50.
• The company’s latest quarter showed mixed results: EPS missed estimates by $0.01 and revenue came in below expectations at $4.99 billion versus $5.09 billion forecast. Infosys also cut its full-year growth outlook, which pressured the stock.
• Despite the softer outlook, Infosys highlighted some positives, including $3.6 billion in large deal wins, 8.2% AI-related revenue, and a resilient 21.1% operating margin. Institutional investors also increased positions in the stock during the first quarter.

Shares of Infosys Ltd. (NYSE:INFY - Get Free Report) have been assigned a consensus rating of "Hold" from the nine brokerages that are presently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and one has issued a buy rating on the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $12.5013.

Several research firms have commented on INFY. Susquehanna cut their price objective on Infosys from $14.00 to $12.00 and set a "neutral" rating on the stock in a research report on Friday, July 10th. BMO Capital Markets decreased their target price on Infosys from $20.00 to $15.00 and set a "market perform" rating for the company in a research report on Friday, April 24th. TD Cowen lowered their target price on Infosys from $13.00 to $10.00 and set a "hold" rating for the company in a research note on Thursday, July 9th. Wells Fargo & Company set a $11.00 target price on Infosys and gave the company an "equal weight" rating in a report on Friday, June 26th. Finally, JPMorgan Chase & Co. reduced their price target on Infosys from $16.80 to $12.70 and set an "overweight" rating on the stock in a research report on Wednesday, June 24th.

Institutional Trading of Infosys

Hedge funds have recently made changes to their positions in the company. Trinity Street Asset Management LLP grew its stake in shares of Infosys by 45.5% during the first quarter. Trinity Street Asset Management LLP now owns 14,938,546 shares of the technology company's stock valued at $201,820,000 after acquiring an additional 4,674,742 shares in the last quarter. Lazard Asset Management LLC lifted its stake in shares of Infosys by 17.0% in the first quarter. Lazard Asset Management LLC now owns 26,776,494 shares of the technology company's stock worth $361,750,000 after acquiring an additional 3,893,801 shares in the last quarter. Hudson Edge Investment Partners Inc. lifted its stake in shares of Infosys by 56.5% in the first quarter. Hudson Edge Investment Partners Inc. now owns 4,452,990 shares of the technology company's stock worth $60,160,000 after acquiring an additional 1,607,300 shares in the last quarter. Weiss Asset Management LP acquired a new position in shares of Infosys in the first quarter worth about $10,708,000. Finally, Bessemer Group Inc. boosted its holdings in Infosys by 49.3% in the first quarter. Bessemer Group Inc. now owns 1,720,708 shares of the technology company's stock valued at $23,248,000 after purchasing an additional 568,573 shares during the last quarter. Hedge funds and other institutional investors own 16.20% of the company's stock.

Key Headlines Impacting Infosys

Here are the key news stories impacting Infosys this week:

• Positive Sentiment: Infosys reported strong large deal wins of $3.6 billion, with 61% net new business, and generated robust free cash flow of $0.96 billion. Infosys PR Newswire release
• Positive Sentiment: AI-related revenue reached 8.2% of the quarter’s total, signaling continued traction in higher-growth services. Infosys PR Newswire release
• Positive Sentiment: Operating margin stayed resilient at 21.1%, helping offset some of the revenue softness. Infosys PR Newswire release
• Neutral Sentiment: Infosys named insider Ashiss Kumar Dash as CEO-designate, a leadership transition that may reassure investors because it suggests continuity, but it also comes alongside a more cautious outlook. Reuters article
• Negative Sentiment: Quarterly revenue missed expectations, reinforcing worries that enterprise clients are slowing spending. Reuters article
• Negative Sentiment: Infosys cut its full-year FY27 growth forecast, which is the main reason investors are selling the stock today. MSN article
• Negative Sentiment: The company also missed consensus EPS by a penny, adding to the cautious tone around the results. MarketBeat earnings report

Infosys Trading Down 2.1%

Shares of INFY stock opened at $10.71 on Friday. The company's fifty day simple moving average is $11.64 and its 200-day simple moving average is $13.73. Infosys has a 52 week low of $10.30 and a 52 week high of $30.00. The company has a market cap of $43.32 billion, a PE ratio of 13.38, a P/E/G ratio of 1.43 and a beta of 0.90.

Infosys (NYSE:INFY - Get Free Report) last posted its earnings results on Thursday, July 23rd. The technology company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.01). Infosys had a net margin of 16.44% and a return on equity of 32.64%. The business had revenue of $4.99 billion for the quarter, compared to analyst estimates of $5.09 billion. Equities research analysts expect that Infosys will post 0.82 EPS for the current fiscal year.

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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