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Brokerage firms Jefferies and CLSA have expressed a positive outlook on Infosys, highlighting the company’s growth potential in the realm of generative AI (Gen-AI). Both firms have reiterated a positive stance on Infosys, despite the current market challenges.
Jefferies, in particular, has maintained a ‘Buy’ rating with a target price of Rs 1,650 per share, emphasizing the company’s growth trajectory in the coming fiscal year. On the other hand, CLSA has given an ‘Outperform’ rating with a target price of Rs 1,553 per share, showcasing their confidence in Infosys’s long-term prospects.
Despite facing rough cyclical currents, Infosys’s long-term industry positioning remains robust, as mentioned by CLSA. The company’s revival of sales growth is expected to be fueled by cloud services, a rebound in discretionary spending, and advancements in Gen AI.
Jefferies highlighted that while the overall discretionary IT spending is under pressure due to macroeconomic and technological uncertainties, Infosys is poised to experience front-ended growth in FY25. The company has been proactive in investing heavily in enhancing its capabilities in generative AI (Gen-AI), signaling its readiness to capture opportunities in this burgeoning sector.
In the recent market scenario, Infosys shares have shown promise with a nearly 6 percent gain in June after months of negative returns from March to May. This uptrend indicates renewed optimism for IT stocks, with Infosys leading the way with its strategic investments and focus on innovative technologies.
Overall, the positive outlook from leading brokerage firms signifies the growth potential and resilience of Infosys in navigating through the current market challenges. As the company continues to invest in future-ready technologies like generative AI, it is well-poised to capitalize on emerging opportunities and drive sustainable growth in the IT sector.
