Infosys climbs 2% as BofA Securities double upgrades IT services major
Also, transformational IT spends could see an uptick post US elections Upcoming earnings to provide last cut/floor to CY24E, the brokerage said. Also, it stated that valuation affords the case for our upgrade.
Shares of Infosys in Tuesday’s trade were up by over 1 per cent to day’s high of Rs after Bank of America double upgraded the stock to ‘buy’ from the earlier ‘neutral’ view with the target raised to Rs 1785 from the earlier Rs 1735. The new revised target implies nearly 21 per cent probable gains from the stock.
The upgrade has been effected in the counter making an early case for CY25 demand recovery. Further, the institution maintains that normalization of the post covid spike in IT spends could be done with mid CY24. Also, compliance of the Basel requirements is expected to drive up regulatory tech spends by banks.
Additionally, BofA is of the view that amidst the 2027 support, SAP upgrade deadline is becoming more of a priority for enterprises. Also, transformational IT spends could see an uptick post US elections Upcoming earnings to provide last cut/floor to CY24E, the brokerage said. Also, it stated that valuation affords the case for our upgrade.
At 9:49 am, shares of the IT services player were up nearly 2 per cent at Rs 505.95 per share on the BSE.
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