Infosys hit by slew of downgrades post Q4 results; should you buy, sell or hold?

Morgan Stanley, CLSA, and Credit Suisse downgraded the stock and slashed its 12-month target price to Rs 650 which roughly translates into a downside of about 13 percent from Friday’s closing price of Rs 743.

Infosys, which reported a 10.51 percent year-on-year (YoY) rise in consolidated profit at Rs 4,078 crore for March quarter beating analyst expectations, was hit by a slew of downgrades post-March quarter results.

The Bengaluru-based technology major reported 2.4 percent QoQ growth in revenue but margin at 21.4 percent was below expectations of 22.2 percent.

Also, the IT major lowered its revenue guidance to 7.5-9.5 percent in constant currency terms. The company had set the revenue guidance at 8.5-9 percent in FY19 as opposed to 6-8 percent in FY18.

Reacting to the results, Morgan Stanley, CLSA and Credit Suisse downgraded the stock and slashed its 12-month target price to Rs 650 which roughly translates into a downside of about 13 percent from Friday’s closing price of Rs 743.

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