Infosys, one of India’s leading IT companies, has recently undergone a review by several prominent financial institutions. JPMorgan has maintained an overweight rating on the stock but has cut its target price to Rs 1700. Despite the unimpressive headline, JPMorgan believes that the company’s cost-take out signings, cyclical recovery credentials, and dividend/buyback yield support remain strong.
On the other hand, CLSA has downgraded Infosys to neutral and reduced its target price to Rs 1553. The firm cited weakness across key verticals and has cut its earnings per share estimates for FY25 and FY26 by 4%.
Jefferies, however, remains bullish on Infosys and has maintained a buy rating on the stock while lowering its target price to Rs 1630. The firm believes that the recent fourth-quarter results may have missed estimates, but strong deal wins provide comfort for an expected 9% earnings per share compound annual growth rate over FY24-27.
Citi has also downgraded Infosys to neutral and reduced its target price to Rs 1550. The firm has lowered its earnings per share estimates for FY25 and FY26 by 3% each and suggests buying the stock at Rs 1350 levels.
Nomura, on the other hand, has maintained a neutral rating on Infosys but has reduced its target price to Rs 1400. The firm expressed concerns over weaker-than-expected guidance for FY25 and a lack of signs of discretionary demand revival. Nomura has lowered its earnings per share estimates for FY25 and FY26 by 2-3%.
In contrast, Bajaj Auto has received positive reviews from analysts. JPMorgan has upgraded the stock to overweight and raised its target price to Rs 10000. The fourth-quarter results were 5% ahead of expectations, and management commentary remained optimistic. Jefferies has also maintained a buy rating on Bajaj Auto and raised its target price to Rs 10500, citing strong EBITDA and PAT growth. Bernstein has an outperform rating on the stock with a target price of 10300, highlighting margin and volume strength as key drivers.
Overall, while Infosys may be facing some challenges, Bajaj Auto seems to be on a positive trajectory according to analysts’ reviews. Investors will need to carefully consider these recommendations before making any investment decisions.
