Buy Infosys: target of Rs 2050: Sharekhan

Sharekhan is bullish on Infosys has recommended buy rating on the stock with a target price of Rs 2050 in its research report dated December 21, 2021.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

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Sharekhan’s research report on Infosys

Infosys is among the best-positioned companies to benefit from strong demand backed by its strategic investments in scaling-up its digital capabilities, wining market share, and expanding presence in Europe. Though management cited Q3FY2022 growth will be impacted with usual seasonality, we believe strong demand environment and one-month incremental revenue from the Daimler deal will offset some of the seasonality impact. Margins are expected to remain under pressure in the near term due to supply-side issues, wage revision for senior employees, and weak seasonality, partially offset by strong growth in the digital business, operational efficiencies, and currency tailwinds.

Outlook

We maintain Buy on Infosys with an unchanged PT of Rs. 2,050, given strong earnings growth potential, solid execution, and strong demand.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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