Infosys nears record high

Shares of Infosys were trading higher by nearly 1% at Rs 1,153, extending its 5.3% rally in past two sessions on the National Stock Exchange (NSE).

The stock hit an intra-day high of Rs 1,160, a less than 1% away from its record high of Rs 1,168 touched in February this year on the NSE.

In past one month, Infosys has outperformed the market by gaining 21% from Rs 950 on July 13 as compared to 0.80% decline in the CNX Nifty. CNX IT index gained 9.5% during the same period.

Shashi Bhusan and Hussain Kagzi, analysts at Prabhudas Lilladher recommended ‘buy’ rating on the Infosys stock with target price of Rs 1,340 after the company had reported a better than expected results for the quarter ended June 30, 2015.

“We expect Infosys to deliver 9.5% year-on-year revenue growth in FY16 which will be accelerate to 15% in FY17. In a growth starved world staring at deflationary?risk, we expect funds to chase the companies with accelerated revenue outlook. Hence, we expect Infosys to see a re?rating through the course of FY16”, analysts said in report dated August 4, 2015.

Sarabjit Kour Nangra, analyst at Angel Broking maintains Buy rating on the stock with a target price of Rs 1,306.

“Infosys has maintained its future constant-currency (CC) revenue growth guidance for FY2016 at 10-12%. By FY2017, the company expects to lead industry growth and reach a milestone of achieving sales of US$20 billion by FY2020,” analyst said in a report dated July 23, 2015.

Infosys Technologies Limited