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Investing.com - Stifel raised its price target on Infosys (NYSE:INFY) to $18.50 from $17.00 on Thursday, while maintaining its Hold rating on the IT services company following its fiscal first-quarter results. According to InvestingPro data, analyst targets for Infosys range from $18.00 to $24.40, with the company currently commanding a market capitalization of $73.2 billion.
The Indian technology giant reported first-quarter revenue growth of 3% year-over-year on an organic constant currency basis, and raised the low end of its fiscal 2026 revenue guidance to 1-3% from 0-3% previously. The company’s margin guidance remained unchanged at a midpoint that suggests flat year-over-year performance. InvestingPro analysis shows the company maintains strong financial health with a "GREAT" overall score, supported by robust profitability metrics and a healthy current ratio of 2.18.
Infosys demonstrated improving long-term bookings trends despite a year-over-year decline, which Stifel attributed to difficult comparisons with the prior year. The company’s headcount remained flat quarter-over-quarter for the second consecutive quarter, consistent with the current macroeconomic uncertainty.
Stifel is modeling revenue growth at the high end of guidance (3%) with flat margins, resulting in projected earnings per share growth of 3%. The firm noted that Infosys’ guidance implies growth will decelerate from approximately 4% in the first quarter to about 2% for the remainder of the year, which management attributes to lower pass-through costs.
The stock traded modestly higher following the results, which Stifel suggested might reflect negative sentiment and in-line performance. The research firm considers Infosys fully valued at 22-23 times fiscal 2027 earnings per share. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with additional insights available in the comprehensive Pro Research Report, which covers key metrics and growth drivers for this prominent IT Services player.
In other recent news, Infosys Limited reported second-quarter earnings that aligned with analyst expectations, while its revenue surpassed forecasts. The company achieved earnings per share of $0.19, meeting the consensus estimate. Revenue was reported at $4.94 billion, exceeding the anticipated $4.88 billion and reflecting a 3.8% year-over-year growth. In constant currency terms, Infosys experienced a sequential revenue increase of 2.6%. Additionally, Jefferies raised its price target for Infosys to INR1,860, maintaining a Buy rating, following the company’s strong first-quarter results. The firm highlighted large deal wins totaling US$3.8 billion as a significant positive factor. Meanwhile, TD Cowen increased its price target to $18.00 from $17.00, maintaining a Hold rating, citing Infosys’ better-than-expected performance. These developments showcase the company’s steady financial performance and positive reception from analysts.
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