Nomura Securities Maintains a 'Neutral' on Infosys Technologies (INFY); Lowering PT & Estimates
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Price: $41.73 -1.72%
Rating Summary:
5 Buy, 12 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 17 | New: 13
Rating Summary:
5 Buy, 12 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 17 | New: 13
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Nomura Securities maintains a 'Neutral' on Infosys Technologies (NASDAQ: INFY).
Analyst, Ashwin Mehta, said, "We maintain our rating on Infosys and believe pure valuation is not a reason to play on turnaround hopes, as Infosys faces battles on multiple fronts. We are Neutral on Infosys and prefer HCLT / Cognizant Technology (Nasdaq: CTSH) within tier-1 IT. Among Neutrals, we prefer TCS. For 1Q results, Key result disappointments were: 1) a miss on 1Q USD revenue guidance and no material INR depreciation benefits in FY13 EPS guidance; 2) a cut in FY13F USD revenue growth guidance to 5% (vs 8-10%); 3) discontinuation of quarterly guidance indicating low visibility; 4) a pricing dip of 3.7% q-q. We reduce our valuation multiple to 13x (from 14x) on 1) pricing cuts and 2) growth moderation and lower visibility. We lower our FY13/14F EPS by 7/6%, and now look for USD revenue CAGR of 7% and EPS CAGR of 9% over FY12-14F. Our TP declines to INR2,260 based on 13x FY14F EPS."
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 $40.21 yesterday, with a 52 week range of $38.12-$64.00.
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Analyst, Ashwin Mehta, said, "We maintain our rating on Infosys and believe pure valuation is not a reason to play on turnaround hopes, as Infosys faces battles on multiple fronts. We are Neutral on Infosys and prefer HCLT / Cognizant Technology (Nasdaq: CTSH) within tier-1 IT. Among Neutrals, we prefer TCS. For 1Q results, Key result disappointments were: 1) a miss on 1Q USD revenue guidance and no material INR depreciation benefits in FY13 EPS guidance; 2) a cut in FY13F USD revenue growth guidance to 5% (vs 8-10%); 3) discontinuation of quarterly guidance indicating low visibility; 4) a pricing dip of 3.7% q-q. We reduce our valuation multiple to 13x (from 14x) on 1) pricing cuts and 2) growth moderation and lower visibility. We lower our FY13/14F EPS by 7/6%, and now look for USD revenue CAGR of 7% and EPS CAGR of 9% over FY12-14F. Our TP declines to INR2,260 based on 13x FY14F EPS."
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 $40.21 yesterday, with a 52 week range of $38.12-$64.00.
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