Brokerage firm Nomura has reiterated its bullish stance on Infosys after the results, with its “buy” recommendation and a revised price target of ₹1,640 from ₹1,630 earlier. Infosys is also Nomura’s top pick within the largecap Indian IT space.
Nomura’s revised price target implies an upside potential of 33% from Thursday’s closing. The stock had ended at the day’s low on Thursday before the results announcement. Over the last two sessions, shares have declined 5.5% already.
The brokerage called Infosys’ financial year 2027 revenue growth guidance of 1.5% to 3.5% largely in-line at the mid-point, with a better outlook for the BFSI and EURS verticals.
“We expect EBIT margins to remain largely stable at 21%, compared to the company’s guided band of 20% to 22%,” Nomura said.
For the fourth quarter, Infosys’ constant currency revenue declined by 1.6%, compared to estimates of a 0.6% decline. Deal wins stood at $3.2 billion, lower than the average of the last three quarters of $4.5 billion.
The management sees AI as a huge growth opportunity and also said that its contribution to the overall revenue was higher than the 5.5% it disclosed at the end of the third quarter.
Citi has cut its price target on Infosys to ₹1,300 but maintained its “neutral” rating. The brokerage said that Infosys will continue to deliver a better performance compared to its peer group in financial year 2027 as well.
A “hold” recommendation also comes from Jefferies with a price target of ₹1,235. The brokerage said that it has raised its estimates by 1% to 2% due to forex and it expects Infosys to deliver a 7% recurring Earnings per Share (EPS) CAGR going forward.
“While a 4% dividend yield caps downsides, worsening growth outlook limits upsides,” the brokerage wrote.
DAM Capital has downgraded Infosys to “Neutral” from its earlier rating of “buy” and cut its target to ₹1,300 from ₹1,700 earlier. It said that with the weak guidance, the company’s medium-term outlook is uncertain. It also said that the three quarters of incremental impact from the European auto client will keep growth rates for financial year 2028 in check as well.
While Morgan Stanley has retained its “equalweight” rating on the stock, it has sharply cut its price target to ₹1,380 from ₹1,760 earlier.
Majority of the 50 analysts that have coverage on the stock, continue to have a “buy” recommendation on it. Shares of Infosys are down 25% so far in 2026.
This story will be updated with more analyst recommendations.Also Read: Infosys hits $20 billion milestone, closes gap with TCS despite IT slowdown
