The company has lost more than ₹40,000 crore in market capitalisation during this six-day losing streak, during which, the stock has shed nearly 11% in value.
Shares of Infosys are also the worst performers on the Nifty IT index for the first three sessions of the week so far. Not only Infosys, its other Nifty IT peers, Coforge, Tech Mahindra, Wipro, HCLTech, Mphasis, TCS, LTM and Persistent Systems have declined between 3% to 6%, in-line with the Nifty IT index, which has declined 6% for the week so far.
JPMorgan on Infosys
JPMorgan has maintained a “Neutral” rating on Infosys with a target price of ₹1,050 per share.The brokerage said enterprises continue to seek productivity benefits, driving AI-led deflation, although deflation intensity could moderate as AI productivity gains normalise.
JPMorgan said an acceleration in AI-led growth will depend on strong demand and moderating deflation, as well as a revival in discretionary spending.
On demand trends, the brokerage said financial services and insurance (FS) and utilities, resources and energy (SURE) demand remains healthy, while manufacturing is strong. Telecom and retail, however, remain soft.
JPMorgan also flagged rising competitive intensity in vendor-consolidation deals, although Infosys is avoiding margin-dilutive wins.
The brokerage expects Project Maximus gains to be reinvested into sales, partnerships and employee reskilling. Infosys remains open to larger M&A deals to build capabilities, but continues to be valuation conscious.
Analysts on Infosys and stock reaction
According to Bloomberg analysts’ data, Infosys has a consensus rating of 3.92, with 29 of the 49 analysts covering the stock recommending a Buy, 16 with a Hold rating and 4 recommending a Sell.The consensus 12-month target price is ₹1,201.18, against the last price of ₹1,035.10, implying a 16% return potential.
Shares of Infosys are trading 4.8% lower on Wednesday at ₹1,030.4. The stock is down 13% in the last one month, while on a year-to-date basis, the stock is down nearly 37%.
The stock’s 8.4% weekly decline so far for Infosys shares is also the steepest among the IT stocks shown in the sector-performance data.
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