Jefferies Assumes Infosys Technologies (INFY) at Buy
- Top 10 News for 2/8 - 2/12: Banks Crushed Amid Global Concerns; Tesla Ramps on Outlook; SEC Targets Boeing
- U.S. Justice Scalia, conservative icon, dead at 79
- Wall Street rallies; S&P 500 snaps five-day losing streak
- Loeb's Third Point LLC 13F Shows New Stake Axalta (AXTA), Morgan Stanley (MS), Liquidates T-Mobile (TMUS), Lowers eBay (EBAY) ...
- Intercept Pharma (ICPT) Said to Explore Sale Following Interest
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
- Jefferies Continues to Recommend Pepsico (PEP) Following Solid Q4; PT to $110
- Raising AIG (AIG) Ests and PT on Buybacks and Lower Tax Rate - Piper Jaffray
- UPDATE: Cowen Cuts PT on Zillow (Z) to $12 Amid Q4 Results; Says Sub Growth Absent, Other Issues Remain
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!