Infosys (INFY) Raised to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of Infosys (NYSE:INFY) from a sell rating to a hold rating in a research report released on Wednesday morning, Zacks.com reports.

According to Zacks, “Infosys is benefiting from large deal wins and fast growing digital services. This was reflected in the fourth-quarter fiscal 2019 results. The top line was driven by strong demand for cloud, IoT, cyber plus data and analytics-related services. The company’s focus on Agile Digital and AI-driven Core services is a tailwind. Higher spending on the digital, analytics, cloud, cybersecurity and other new technology domains is a key driver for Infosys. Shares have outperformed the industry in the past year. However, Infosys is suffering from an unfavorable political climate in the United States and the increasing anti-outsourcing sentiment in certain countries. Notably, higher subcontractor costs, and the company’s compensation revision with a higher variable pay and incentives are weighing on margins. Further, the company’s business is highly prone to the currency volatility between the Indian rupee and the U.S. dollar.”

Several other analysts have also recently weighed in on INFY. Investec cut Infosys from a buy rating to a hold rating in a report on Monday, April 15th. Wells Fargo & Co reissued a hold rating on shares of Infosys in a report on Friday, April 12th. Citigroup cut Infosys from a buy rating to a neutral rating in a report on Monday, April 15th. Deutsche Bank cut Infosys from a buy rating to a hold rating in a report on Monday, April 15th. Finally, Morgan Stanley cut Infosys from an overweight rating to an equal weight rating and set a $10.62 price objective for the company. in a report on Monday, April 15th. Two analysts have rated the stock with a sell rating and fifteen have given a hold rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus price target of $11.26.

Shares of NYSE:INFY opened at $10.39 on Wednesday. The stock has a market cap of $45.16 billion, a price-to-earnings ratio of 19.24, a PEG ratio of 1.99 and a beta of 0.54. Infosys has a 1-year low of $8.45 and a 1-year high of $11.38.

Infosys (NYSE:INFY) last announced its quarterly earnings data on Friday, April 12th. The technology company reported $0.13 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.13. The firm had revenue of $3.06 billion during the quarter, compared to analysts’ expectations of $3.04 billion. Infosys had a return on equity of 25.41% and a net margin of 18.62%. During the same period in the previous year, the business posted $0.13 EPS. On average, equities analysts anticipate that Infosys will post 0.55 earnings per share for the current fiscal year.

Several hedge funds have recently made changes to their positions in the company. Fisher Asset Management LLC increased its stake in shares of Infosys by 1.6% in the 4th quarter. Fisher Asset Management LLC now owns 41,879,875 shares of the technology company’s stock valued at $398,696,000 after acquiring an additional 647,262 shares during the last quarter. Investec Asset Management LTD increased its stake in shares of Infosys by 23.1% in the 4th quarter. Investec Asset Management LTD now owns 39,628,149 shares of the technology company’s stock valued at $377,260,000 after acquiring an additional 7,430,134 shares during the last quarter. Bank of New York Mellon Corp increased its stake in shares of Infosys by 1,119,378.1% in the 3rd quarter. Bank of New York Mellon Corp now owns 34,065,719 shares of the technology company’s stock valued at $346,449,000 after acquiring an additional 34,062,676 shares during the last quarter. AQR Capital Management LLC increased its stake in shares of Infosys by 140.0% in the 3rd quarter. AQR Capital Management LLC now owns 25,803,860 shares of the technology company’s stock valued at $262,425,000 after acquiring an additional 15,050,391 shares during the last quarter. Finally, Nordea Investment Management AB bought a new stake in shares of Infosys in the 3rd quarter valued at about $231,652,000. 17.81% of the stock is owned by institutional investors.

About Infosys

Infosys Limited, together with its subsidiaries, provides consulting, technology, and outsourcing services in North America, Europe, India, and internationally. It provides business information technology services, including application development and maintenance, independent validation, infrastructure management, and business process management services, as well as engineering services, such as engineering and life cycle solutions; and consulting and systems integration services comprising consulting, enterprise solutions, systems integration, and advanced technologies.

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