Jefferies Assumes Infosys Technologies (INFY) at Buy
- Top 10 News for 10/20 - 10/24: Apple Ramps on Results; Loeb Eyes Amgen; Advanced Technologies Exits Sapphire Game
- Procter & Gamble (PG) Reports In-Line Q1 EPS; To Spin-Off Duracell
- Dallas Ebola Nurse Nina Pham now cured - NIH Says
- Ford Motor (F) Tops Q3 EPS by 5c
- SodaStream (SODA) Confirms 'Small-Scale' PepsiCo (PEP) Test
Jefferies assumes coverage on Infosys Technologies (NYSE: INFY) with a Buy rating and a price target of $60.00 (from $66.00).
Analyst Atul Goyal notes, "Infosys’ consulting focus approach is evident from the fact that it contributes to a third of its revenues with 44% of revenues from ADM and testing. The company also remains amongst the most leveraged to the US economy, deriving 60% of its revenues from the region with 25% from Europe. On its main business differentiator, he adds, "Infosys is recognized as one of the best delivery organizations, and it commands a 10-15% pricing premium over peers. Its exposure to consulting also makes it the most leveraged to a pickup in discretionary spending."
Commenting on key drivers for the stock price, the analyst highlights: "Infosys is at a stage where most financial metrics are at their worst. Growth has been volatile; margins have fallen 450bps (in the last 13 quarters) despite a currency tailwind. We believe that given the recent reset of expectations for next year, an improvement in either growth or margins would be perceived a positive. Turnaround hopes are hinged on Chairman Murthy."
Shares of Infosys Technologies closed at $52.55 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Credit Suisse Downgrades KLA-Tencor (KLAC) to Neutral - Correct
- UPDATE: Credit Suisse Upgrades Knight Transportation (KNX) to Neutral
- BioMarin (BMRN) PT Lifted to $87 at Jefferies Posts Q3
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, New Coverage
Related EntitiesJefferies & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!