Infosys Witnesses Over 6 Percent Surge in Share Price After Q3 Earnings Beat

Infosys Witnesses Over 6 Percent Surge in Share Price After Q3 Earnings Beat

VoM News Desk | January 12, 2024 | 10:39 AM IST | Breaking News | Follow on Google News

Infosys Witnesses Over 6 Percent Surge in Share Price After Q3 Earnings Beat/Reuters

Infosys Witnesses Over 6 Percent Surge in Share Price After Q3 Earnings Beat

Infosys experienced a significant rally in its share price, surging over 6% in early trade after reporting better-than-expected earnings for the third quarter of FY24. Despite a decline in revenue and net profit, the IT services major’s shares reached ₹1,594.95 apiece, marking its most substantial single-day gain since July 2020. Infosys reported a consolidated net profit of ₹6,106 crore, a 1.7% fall from the previous quarter, while revenue dropped by 0.4% to ₹38,821 crore. The company’s improved performance, strong deal wins, and narrowed revenue growth guidance for FY24 contributed to the positive market response.

Analyst reactions:

• Jefferies raised Infosys estimates and maintained a ‘Buy’ rating with a target price of ₹1,740 per share.
• Nuvama Institutional Equities upgraded FY24, FY25, and FY26 estimates, maintaining a ‘Buy’ rating and raising the target price to ₹1,850 per share.
• Antique Stock Broking maintained a ‘Hold’ rating, increasing the target price to ₹1,675 per share.
• Phillip Capital upgraded to a ‘Buy’ rating, with a target price of ₹1,690 per share.
• Emkay Global Financial Services retained a ‘Buy’ call with an unchanged target price of ₹1,850 per share.

Infosys’ solid deal momentum and expectations for revenue growth improvement in FY25, coupled with margin outlook optimism, contributed to the positive outlook among analysts.

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