The upgrade comes as analysts at the brokerage house cited that demand remained resilient, supported by attractive pricing. CLSA also mentioned that discretionary spending across key sectors and regions continues to hold steady.
The seasonally weak fourth quarter of FY25 has already been factored into valuations, while on-ground demand remains strong, the brokerage noted.
Additionally, CLSA said that the recent uncertainties related to tariffs could result in a broader growth guidance range for FY26.
During the third quarter, the IT services giant expected revenue growth in constant currency terms to be between 4.5% to 5% for FY25, which was higher than the 3.75% to 4.5% growth they had projected at the end of the September quarter.
This was the third straight instance of Infosys tweaking with the revenue growth guidance for the full year. It begun FY25 with a 1% to 3% growth guidance, which was then revised higher to 3% and 4% at the end of the June quarter.
CLSA in its note also wrote about Infosys’ strong delivery capabilities, citing discussions with Mr. Satish HC, the company’s delivery head.
Further, CLSA said that valuations appear more attractive given the favorable cyclical and structural demand tailwinds ahead.
Another brokerage firm BofA Securities has a price target of ₹2,150 on Infosys. It expects Infosys to be a key beneficiary given its exposure to themes that will do well in a recovering demand environment like cloud, data and ERP.
The stock is now trading at 23.5 times 12-months forward price-to-earnings, which is at a 5% discount to its five-year average trading multiple.
Shares of Infosys had ended at the lowest point of the day on Friday, down 1.8% at ₹1,685. The stock is down over 10% so far in 2025.
First Published: Mar 10, 2025 8:25 AM IST
