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Jefferies Assumes Infosys Technologies (INFY) at Buy

April 25, 2014 6:46 AM EDT Send to a Friend
Get Alerts INFY Hot Sheet
Price: $59.40 -0.17%

Rating Summary:
    11 Buy, 9 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 13 | New: 52
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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."

For an analyst ratings summary and ratings history on Infosys Technologies click here. For more ratings news on Infosys Technologies click here.

Shares of Infosys Technologies closed at $52.55 yesterday.





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