Needham & Company Maintains a 'Buy' on Infosys (INFY); Q2 Preview: Some Caution Prudent, but Risk-Reward Remains Attractive for L-T Investors

Needham & Company maintains a 'Buy' on Infosys (NASDAQ: INFY) price target of $75.00.

Needham analyst says, "INFY is scheduled to report 2Q results before the open on Wednesday, October 12th. We believe some caution is prudent going into earnings. Given the macro uncertainty, particularly in Europe, and recent management and operational changes at INFY, we see limited potential for upside and expect INFY to report results essentially in with expectations and leave full year guidance largely intact. We believe currency volatility through the quarter could impact revenue (negatively) and margins (positively), but the impact on earnings should even out. While we are cautious going into the print, we believe industry trends remain solid as customers continue to leverage low cost offshore resources to reduce IT costs and regulatory changes in healthcare and financial�services could serve as an incremental growth driver over the next 1-2 years. We are maintaining our BUY on INFY with a 12 month price target of $75, but recommend investors use weakness to add to or initiate positions. Our favorite idea in the IT offshore space remains Cognizant (Nasdaq: CTSH)(Strong BUY)."

Needham sees Q2 EPS of $0.69 and revenues of $1.75 billion

For more ratings news on Infosys Technologies click here and for the rating history of Infosys Technologies click here.

Shares of Infosys Technologies closed at $53.83 yesterday.

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