Infosys predicted to outperform thanks to deal wins and growth outlook

From Investing.com: 2025-01-03 09:46:53

Infosys Ltd shares are predicted to outperform India’s stock index in the next two months, according to Morgan Stanley. Potential upgrades to fiscal 2025 revenue guidance and steady large deal momentum are key factors in this projection. The company could secure $3.5-$4 billion in large deals in Q3, with margins expected to stay within 20%-22% range.

Analysts at Morgan Stanley believe Infosys’ stock could narrow the valuation gap with peers like Tata Consultancy Services if revenue growth surpasses expectations. While shares have trailed behind larger competitors, they have the potential to gain ground in the market. There is a 60% probability for steady growth and a 30% chance for a bullish outlook driven by increased IT spending.

Risks for Infosys include potential loss of new business, rupee appreciation, and regulatory hurdles in the U.S. On the other hand, upside triggers could include revenue growth exceeding guidance and a weaker rupee. The firm remains optimistic about the company’s performance in the upcoming quarters.



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