Infosys Technology : Strong Buy Call for Target of Rs 3350

by khalid on 24/04/2011 · 0 comments

Stock Broking firm ICICI Securities Limited is bullish on Infosys Technology Limited and has given “Strong Buy” call for a time horizon of 12 months to get a target price of Rs 3350 per share.

Current Market Price: Rs 2915 on 18th Apr 2011
Target Price: Rs 3350
Time Horizon : 12 to 15 months
Potential Upside : 15%

According to the Broking firm, the investors can buy the stock on dips with a 12 month target of Rs 3350. Infosys’ Q4FY11 numbers missed estimates but what surprised was the “too” conservative FY12 EPS guidance. Consequently, though we have lowered our FY12E and introduced FY13E estimates, we have changed our rating to STRONG BUY (HOLD earlier) as a further decline in the stock provides attractive entry points.

Valuations : We are adjusting our FY12E and introducing our FY13E estimates. Our estimates assume 18%/13.5% CAGR rupee revenue/EPS growth during FY10-FY13E. We have valued Infosys at 20.9x its FY13E EPS of Rs 160, a discount relative to its historical one year average forward PE of 22x, to account for the longer time horizon. Consequently, we have changed our rating to STRONG BUY with a 12 month target price of Rs 3350 per share.

Share’s Data :-
BSE Code : 500209
Mkt. Cap : Rs 167,049.14 Crores
Infosys Technology Ltd. share’s CMP is Rs 2,909.25 on 21st Apr 2011.

Stay tuned to BelltheBull Blog for more news on Infosys Technology Limited !

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