Today’s rally in Infosys shares was the biggest single-day gain in the counter since July 16, 2020.
While reporting a 1% quarter-on-quarter (QoQ) revenue decline in constant currency terms, Infosys has tightened its revenue growth guidance band to 1.5-2% in cc terms (vs 1.0-2.5% earlier), which implies -1% to 0% QoQ cc growth for Q4.
EBIT margin of 20.5% declined 70bp QoQ, but it was 30bp above estimates as the impact of the wage hike was lower than expected at 70 bps.
Also Read | Infosys Q3 Results: Profit falls 7% YoY to Rs 6,106 crore; company revises FY24 revenue guidance
Here’s what analysts said after Infosys Q3 results:
Nomura
We tweak our FY24-26F EPS by
Motilal Oswal
We have kept our FY24-FY26 EPS estimates broadly unchanged after the 3QFY24 result. We view Infosys as a beneficiary of acceleration in IT spending, given its capabilities in Cloud and Digital transformation areas. We value the stock at 22x FY26E EPS and reiterate our BUY rating. Target price: Rs 1,750.
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Nuvama
We upgrade FY24/25/26 estimates by -0.3%/+1.3%/+2.2%. We continue to value Infosys at 24x FY26 PE. Maintain ‘BUY’ with a target price of Rs 1,850 versus Rs 1,800 earlier.
Emkay Global
We expect growth to accelerate in FY25 on account of the ramp-up of large deals, strong deal pipeline and expected recovery in discretionary spending. We tweak FY24-26 EPS estimates by under 1%, factoring in Q3 performance. We retain BUY with an unchanged target price of Rs 1,850 at 25x its Dec-25E EPS.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
