Needham & Company Starts Infosys Technologies (INFY) at Buy; Global Franchise

Needham & Company initiates coverage on Infosys Technologies (NASDAQ: INFY) with a Buy. PT $75.

Needham analyst says, "As one of the top-tier global IT services companies, we believe Infosys is a core holding name for large-cap tech investors. We believe recent investor concerns around underperformance on revenue growth versus its peers and margin compression, while not entirely misplaced, are overdone, in turn creating a compelling buying opportunity. We believe an improvement in sequential revenue growth and positive surprises on margins relative to management’s conservative guidance could be the catalyst for earnings upgrades over FY12 and lead to multiple expansion. With Infosys trading at 18x CY12 EPS, valuation is attractive for a 20-25% long term EPS grower and a global franchise."

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 $61.26 yesterday.

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