BNP Paribas upgrades Infosys shares to 'buy' ahead of earnings

Oct 07 2013, 11:21 IST
Comments 0
Infosys will announce its September-quarter earnings on October 11. Infosys will announce its September-quarter earnings on October 11.
SummaryTarget price of Infosys' shares has also been raised to Rs 3,550 from Rs 2,450.

BNP Paribas upgrades Infosys Ltd to "buy" from "hold" and raises its target price to Rs 3,550 from Rs 2,450 ahead of the company's September-quarter earnings on Friday.

"Despite Infosys's recent struggles, we believe an uptick in demand, renewed focus on traditional service lines and cost initiatives will lead to revenue growth stabilising and currently depressed quarterly margins recovering. This in turn should lead the stock to re-rate," BNP said in a note.

BNP adds there is improvement in the core markets of Infosys and it may raise its FY14 dollar revenue growth guidance in the second-quarter results.

Infosys shares rose just 0.3 per cent in the previous week, underperforming the BSE benchmark for IT sector which rose 2.4 per cent in the same period.

Infosys shares are up 0.14 per cent at 0441 GMT.

Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...