Brokerage firm Nomura has reiterated its bullish stance on Infosys after the results, with its “buy” recommendation and a revised price target of ₹1,640 from ₹1,630 earlier. Infosys is also Nomura’s top pick within the largecap Indian IT space.
Nomura’s revised price target implies an upside potential of 33% from Thursday’s closing. The stock had ended at the day’s low on Thursday before the results announcement. Over the last two sessions, shares have declined 5.5% already.
The brokerage called Infosys’ financial year 2027 revenue growth guidance of 1.5% to 3.5% largely in-line at the mid-point, with a better outlook for the BFSI and EURS verticals.
“We expect EBIT margins to remain largely stable at 21%, compared to the company’s guided band of 20% to 22%,” Nomura said.
For the fourth quarter, Infosys’ constant currency revenue declined by 1.6%
, compared to estimates of a 0.6% decline. Deal wins stood at $3.2 billion, lower than the average of the last three quarters of $4.5 billion.
The management sees AI as a huge growth opportunity and also said that its contribution to the overall revenue was higher than the 5.5% it disclosed at the end of the third quarter.
Citi has cut its price target on Infosys to ₹1,300 but maintained its “neutral” rating. The brokerage said that Infosys will continue to deliver a better performance compared to its peer group in financial year 2027 as well.
A “hold” recommendation also comes from Jefferies with a price target of ₹1,235. The brokerage said that it has raised its estimates by 1% to 2% due to forex and it expects Infosys to deliver a 7% recurring Earnings per Share (EPS) CAGR going forward.
“While a 4% dividend yield caps downsides, worsening growth outlook limits upsides,” the brokerage wrote.
Majority of the 50 analysts that have coverage on the stock, continue to have a “buy” recommendation on it. Shares of Infosys are down 25% so far in 2026.
This story will be updated with more analyst recommendations.Also Read: Infosys hits $20 billion milestone, closes gap with TCS despite IT slowdown
