Nomura Securities Reiterates a 'Buy' on Infosys (INFY); Meeting Takeaways

Nomura Securities reiterates a 'Buy' on Infosys Technologies (NASDAQ: INFY).

Nomura analyst, Ashwin Mehta, said, "We reiterate Buy on INFY and prefer INFY over Tata Consultancy (TCS) despite INFY’s more cautious commentary as we expect: 1) limited differentials in revenue growth over the next two quarters (similar to the previous quarter), 2) Infosys to benefit most from rupee depreciation, with lower forex loss impacts compared to TCS, Wipro (NYSE: WIT) or HCL Tech. Valuations are already discounting the cautious outlook with TCS trading at a ~15% premium over Infosys on our estimates. We believe that, while TCS will likely exhibit greater predictability, higher returns are likely to be generated at Infosys as it is better poised for a rebound situation in 2HFY13F. We would view any near-term disappointments due to Infosys’ higher discretionary exposure as good entry points."

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 $51.67 yesterday.

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