Nomura Securities Downgrades Infosys Technologies (INFY) to Neutral; Three Concerns

April 17, 2012 8:58 AM EDT Send to a Friend
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Nomura Securities downgraded Infosys Technologies (NASDAQ: INFY) to Neutral.

Analyst, Ashwin Mehta, said, "We downgrade Infosys to Neutral with a TP of INR2,550 (from INR3,350) on three concerns: 1) a mismatch in results, commentary and guidance vs our anticipation; 2) a likely second year of growth lag vs peers, industry and Accenture; and 3) greater severity of demand issues vs peers. We also cut our revenue and EPS estimates for FY13/14F post: 1) the disappointing 1Q result/guidance; and 2) weak demand commentary that suggests to us only a slim possibility for a return to trendline growth in FY14F. We also reduce our valuation multiple to 15x (from 18x) as we take out the growth premium we earlier attached to Infosys vs Accenture (NYSE: ACN). We prefer HCLT within tier 1 IT and TCS over Infosys among Neutrals."

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 $47.49 yesterday.




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