Blow to Narayana Murthy, Infosys shares rating slashed to 'sell'

Written by Reuters | Mumbai | Updated: May 7 2014, 17:17pm hrs
InfosysUBS downgrades Infosys to 'sell' saying a turnaround at the IT outsourcer could take longer than expected.
UBS downgrades NR Narayana Murthy-led Infosys to "sell" from "buy" and cut its target price to Rs 2,750 from Rs 4,050, saying a turnaround at the IT outsourcer could take longer than expected.

UBS adds it expects the next wave of growth for the sector to be led by infrastructure services and business process outsourcing, which account for less of Infosys' revenue than competitors such as Tata Consultancy Services (TCS) or HCL Technologies.

UBS also cites Infosys "high" staff attrition and its focus on boosting margins at the expense of stabilising revenue and market share as other risk factors.