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Brokerages Bullish on Infosys As IT Major Better Prepped For Gen AI

Published 18-06-2024, 09:34 am
© Reuters.  Brokerages Bullish on Infosys As IT Major Better Prepped For Gen AI

Benzinga - Brokerages maintained their bullish stance on IT major Infosys (NS:INFY) as they believe the company is ahead of its peers in terms of generative AI capabilities.

Brokerage Views: Jefferies maintained "buy" call on the company with a target price of ₹1,630. The firm says the company's management expects discretionary IT spends to be remain under pressure due to the macro and tech uncertainties.

The growth in FY25 would be front-ended which will reduce the disconnect between growth and deal wins. It also sees multiple opportunities in generative artificial intelligence and is investing heavily to augment its capabilities.

CLSA also reiterated "buy" call with a target price of ₹1,553. While the brokerage said the company is undergoing rough cyclical currents, long-term industry positioning is intact. The sales growth revival will be led by cloud, discretionary spend revival and generative artificial intelligence.

The brokerage sees a substantial opportunity in generative artificial intelligence and said the company's preparations is ahead of its peers. There are multiple margin levers at hand for the company as well.

Kotak Institutional Equities also maintained a "buy" call with a target price of ₹1,750, as it sees the company being a key beneficiary among Indian tier 1 IT when discretionary spending recovers.

The brokerage cited Infosys Co-Founder and Chairman of the Board Nandan Nilekani who expects packaged solutions to be reimagined and resurgence of custom-built solutions enabled with new AI building blocks will benefit Infosys.

Price Action: Shares of Infosys rose 1.09% to ₹1,505.20 on Tuesday morning.

Read Next: ‘We Plan To Add 3,000 New Customers In FY25’: TAC Infosec’s CEO Plans To Become World’s Leading Vulnerability Management Company

Read the original article on Benzinga

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