CLSA said that post Infosys’ buyback announcement, the impact on FY19 EPS is likely to be 0.9 percent, while the return on equity may increase by 550 basis points. Further, it sees a significant senior level departures over the next six months till a new CEO is found. It also sees downside risks to the guidance for FY18/19, and pegs the acceptance ratio around 4.9 percent.
Brokerage: JPMorgan | Rating: Downgrade to Neutral | Target: Reduced to Rs 905
The global research firm said that the leadership vacuum and likelihood of more departures may hurt the company.
Brokerage: Edelweiss Securities | Rating: Downgrade to Hold | Target: Rs 1,010
The brokerage house said that the key risk of management instability has now played out and saw the target multiple cut to 14 times.
Brokerage: Deutsche Bank
The global financial services firm said that CEO’s resignation created another roadblock to business transformation. Further, TCS and Tech Mahindra are the top buys for the firm, while it prefers Wipro over Infosys.
Brokerage: JPMorgan | Target: Increased to Rs 750
JPMorgan said that the annual report shows scaling up of profitability with good cost and working capital control.
Brokerage: HSBC | Rating: Buy | Target: Raised to Rs 285
The brokerage house cut earnings estimates for FY118/19 by 12-13 percent.
Brokerage: Deutsche Bank | Target: Increased to Rs 1,290
Deutsche Bank said that strong core business growth and value unlocking to drive upsides for the stock.[“Source-moneycontrol”]