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

May 07 2014, 11:47 IST
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UBS downgrades Infosys to 'sell' saying a turnaround at the IT outsourcer could take longer than expected. UBS downgrades Infosys to 'sell' saying a turnaround at the IT outsourcer could take longer than expected.
SummaryInfosys shares target price cut to half, turnaround a worry: UBS

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.

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