Zacks Investment Research Upgrades Infosys Ltd. (INFY) to Hold
Infosys Ltd. (NYSE:INFY) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Thursday.
According to Zacks, “Infosys’ earnings have been a mixed bag over the four trailing quarters, with a beat and a miss, while being in line for the other two. The company has added a significant number of clients in recent times, which is expected to enhance both top- and bottom-line growth. The company’s recent introduction of AikiDo service offerings, and the success of its EdgeVerve business and Skava platform are expected to set it apart from peers, thereby aiding its growth momentum in the near term. However, factors like seasonality and stiff competition in the IT industry may continue to impact the company’s financials. Also, Infosys’ fixed-price and fixed-timeframe contracts expose it to risks of loss arising from inaccurate estimations of project pricing. This apart, slowdown in certain key markets and currency volatility, which has been heightened by Brexit, adds to the company’s woes.”
A number of other research firms have also commented on INFY. BMO Capital Markets reissued a “hold” rating on shares of Infosys in a report on Monday, July 18th. Oppenheimer Holdings Inc. reissued a “hold” rating on shares of Infosys in a report on Friday, July 15th. Wells Fargo & Co. reissued a “hold” rating on shares of Infosys in a report on Tuesday, August 16th. HSBC lowered Infosys from a “buy” rating to a “hold” rating in a report on Tuesday, August 9th. Finally, Cantor Fitzgerald reissued a “hold” rating and issued a $17.00 target price on shares of Infosys in a report on Monday, July 18th. Fourteen equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average price target of $18.23.
Shares of Infosys (NYSE:INFY) opened at 15.78 on Thursday. The company’s 50-day moving average price is $16.05 and its 200-day moving average price is $17.68. The stock has a market cap of $36.07 billion, a PE ratio of 17.34 and a beta of 0.99. Infosys has a one year low of $15.64 and a one year high of $20.47.
Infosys (NYSE:INFY) last announced its quarterly earnings data on Friday, July 15th. The company reported $0.22 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.23 by $0.01. The company had revenue of $2.50 billion for the quarter. Infosys had a net margin of 21.41% and a return on equity of 23.24%. The company’s revenue was up 16.9% compared to the same quarter last year. During the same period last year, the firm earned $0.21 EPS. Equities research analysts anticipate that Infosys will post $0.95 earnings per share for the current year.
Institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP increased its position in shares of Infosys by 671.7% in the first quarter. Wellington Management Group LLP now owns 1,610,371 shares of the company’s stock valued at $30,630,000 after buying an additional 1,401,692 shares during the last quarter. M&T Bank Corp increased its position in shares of Infosys by 2.2% in the second quarter. M&T Bank Corp now owns 11,410 shares of the company’s stock valued at $204,000 after buying an additional 251 shares during the last quarter. UBS Asset Management Americas Inc. increased its position in shares of Infosys by 114.1% in the second quarter. UBS Asset Management Americas Inc. now owns 12,486,489 shares of the company’s stock valued at $222,885,000 after buying an additional 6,653,266 shares during the last quarter. Societe Generale acquired a new position in shares of Infosys during the second quarter valued at approximately $2,750,000. Finally, Aviva PLC increased its position in shares of Infosys by 174.2% in the second quarter. Aviva PLC now owns 352,786 shares of the company’s stock valued at $6,301,000 after buying an additional 224,135 shares during the last quarter. Institutional investors and hedge funds own 17.62% of the company’s stock.
Infosys Limited is engaged in consulting, technology, outsourcing and next-generation services. The Company, along with its subsidiaries, provides business information technology services comprising application development and maintenance, independent validation, infrastructure management, engineering services comprising product engineering and life cycle solutions and business process management; consulting and systems integration services comprising consulting, enterprise solutions, systems integration and advanced technologies; products, business platforms and solutions to accelerate intellectual property-led innovation, including Finacle, its banking solution, and offerings in the areas of Analytics, Cloud and Digital Transformation.
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