Nuvama Institutional Equities has maintained its ‘Buy’ rating on Infosys, and raised its price target to ₹1,850 from earlier ₹1,700.
The brokerage said that Infosys reported solid growth, both in terms of magnitude and quality (with lower third-party revenue). While the guidance upgrade was somewhat soft, it was understandable given the prevailing macroeconomic uncertainty.Nuvama expects the demand environment to remain challenging over the next one to two quarters due to ongoing macro concerns. However, it remains positive on the medium-to-long-term outlook, as enterprises face high technology debt, which is likely to drive a revival in spending as macro conditions improve.
Infosys appears well-positioned to capture this opportunity. At 21x FY27 PE, valuations are not considered expensive, the brokerage added.
Nomura has also reiterated its ‘Buy’ rating on Infosys, with a target price of ₹1,880, following the company’s better-than-expected Q1FY26 performance.
Despite a marginal 1% cut in its FY26-28F EPS estimates, the brokerage continues to view Infosys as its top pick in the sector.
Morgan Stanley has maintained its ‘Overweight’ rating on Infosys, with a price target of ₹1,700. The brokerage described Infosys’ Q1 results as more balanced compared to its peers.Morgan Stanley expects the company to achieve FY26 revenue growth near the upper end of its guidance range, with operating margins above the midpoint.
This would make Infosys the strongest EBIT growth story among large-cap IT companies in FY26.
On valuation, the brokerage said that the stock’s P/E discount to HCL Technologies provides some comfort. However, it believes the absence of near-term catalysts could limit a sharp re-rating in the stock.
Bernstein has retained its ‘Outperform’ rating on Infosys, with a price target of ₹1,820, stating the company delivered a solid quarter beating revenue and orderbook estimates.
The brokerage sees Infosys as the growth leader and best positioned in Gen AI among larger peers.
Valuations at 20x FY27 is attractive, Bernstein said.
In its post-earnings interaction, the management of Infosys said the company had a strong start to Q1, growth was broad based.
Based on Infosys’ performance in Q1 and outlook, the company has revised revenue growth guidance to 1-3%. 40 basis points impact of the acquisitions in Q1 constant currency growth of 2.6% and similar impact on full year guidance.
Shares of Infosys listed on Wall Street had the first reaction to its results, rising 1.9% to $18.9. The India-listed shares ended 0.76% lower on Wednesday at ₹1,558.90.
