Zacks Investment Research Downgrades Infosys Ltd (INFY) to Hold
Infosys Ltd (NYSE:INFY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Thursday.
According to Zacks, “Infosys’ Renew New strategy has helped reap multiple benefits, including renewing traditional services, winning deals, introducing services and monetizing from key initiatives. Infosys’ relentless focus on commitment to execution helped it deliver constant currency revenue growth, margin improvement, record cash generation and high revenue per worker in the fiscal first quarter. Its new offerings under its business platforms like Edge, Panaya and Skava are also helping it gain new clients. However, Infosys shares have underperformed the industry average over the past six months. U.S. President-elect Donald Trump’s anti-immigration stance, rising costs and on-site expansion pose as major headwinds. Rapid proliferation of customizable internet-based software has been hampering Infosys’ traditional outsourcing business. Also, the fate of H-1B visas will be a crucial determinant of the company’s future profitability.”
A number of other analysts have also issued reports on the company. Robert W. Baird reissued a “hold” rating and issued a $16.00 price target on shares of Infosys in a research note on Wednesday. Goldman Sachs Group, Inc. (The) raised Infosys from a “sell” rating to a “neutral” rating and lifted their price objective for the company from $12.40 to $12.88 in a research note on Sunday, September 17th. BidaskClub lowered Infosys from a “hold” rating to a “sell” rating in a research note on Tuesday, September 12th. Deutsche Bank AG raised Infosys from a “hold” rating to a “buy” rating in a research note on Monday, August 28th. Finally, Cantor Fitzgerald reaffirmed a “hold” rating on shares of Infosys in a research note on Friday, August 25th. Three equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and three have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $15.34.
Shares of Infosys (NYSE:INFY) remained flat at $14.51 during mid-day trading on Thursday. 1,391,264 shares of the stock were exchanged. The firm’s 50-day moving average price is $14.74 and its 200 day moving average price is $15.09. The stock has a market capitalization of $33.17 billion, a PE ratio of 15.29 and a beta of 0.74. Infosys has a 52 week low of $13.42 and a 52 week high of $16.71.
Infosys (NYSE:INFY) last issued its quarterly earnings results on Friday, July 14th. The technology company reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.23 by $0.01. Infosys had a return on equity of 20.32% and a net margin of 20.39%. The firm had revenue of $170.78 billion for the quarter, compared to analyst estimates of $170.51 billion. During the same period last year, the company earned $0.22 EPS. The firm’s quarterly revenue was up 1.8% on a year-over-year basis. On average, analysts forecast that Infosys will post $0.98 earnings per share for the current year.
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Several large investors have recently made changes to their positions in INFY. Kernodle & Katon Asset Management Group LLC purchased a new stake in shares of Infosys during the 1st quarter valued at about $100,000. PNC Financial Services Group Inc. raised its holdings in shares of Infosys by 82.0% during the 1st quarter. PNC Financial Services Group Inc. now owns 7,547 shares of the technology company’s stock valued at $120,000 after buying an additional 3,400 shares during the period. Tower Research Capital LLC TRC raised its holdings in shares of Infosys by 198.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,967 shares of the technology company’s stock valued at $120,000 after buying an additional 5,295 shares during the period. Equity Investment Corp Acquisition Inc purchased a new stake in shares of Infosys during the 2nd quarter valued at about $151,000. Finally, Personal Capital Advisors Corp purchased a new stake in shares of Infosys during the 2nd quarter valued at about $166,000. Institutional investors and hedge funds own 19.89% of the company’s stock.
Infosys Limited is engaged in consulting, technology, outsourcing and next-generation services. The Company, along with its subsidiaries, provides business information technology services comprising application development and maintenance, independent validation, infrastructure management, engineering services comprising product engineering and life cycle solutions and business process management; consulting and systems integration services comprising consulting, enterprise solutions, systems integration and advanced technologies; products, business platforms and solutions to accelerate intellectual property-led innovation, including Finacle, its banking solution, and offerings in the areas of Analytics, Cloud and Digital Transformation.
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