N.R. Narayana Murthy, Founder, Chairman and Chief Mentor, Infosys Technologies (right) and S. Gopalakrishnan, CEO, in Bagnalore on June 12, 2010.
CLSA has maintained its ‘Buy’ recommendation on Infosys Technologies after the IT bellwether announced earnings for first quarter of 2011.
Though the June quarter results have been disappointing, the revenue guidance is seen as a big positive from the company
“While we must admit that we were expecting a better June quarter, what is truly remarkable is that this usually conservative company has chosen to make a big statement for the future. We were expecting a 3.5% QoQ as the base guidance for September-10 quarter revenues but the company has guided for 5.1% QoQ.
FY11 revenue guidance has moved to 19-21%YY from 16-18%YY earlier despite a 1% headwind from adverse EUR movement. The EPS guidance has been raised as well.
These are meaningful signs of confidence from any company but coming from Infosys, they draw a line in the sand that proclaims robust demand and visibility of growth despite the macro-economic chatter heard from Europe recently.
We believe that our street high estimate of 25-26%YY $-revenue growth for FY11 is reasonable.
BUY on the stock is maintained with a target price of Rs 3,500,” the report said.
Source http://economictimes.indiatimes.com/Buy-on-Infosys-with-target-of-Rs-3500-CLSA/articleshow/6162481.cms
Though the June quarter results have been disappointing, the revenue guidance is seen as a big positive from the company
“While we must admit that we were expecting a better June quarter, what is truly remarkable is that this usually conservative company has chosen to make a big statement for the future. We were expecting a 3.5% QoQ as the base guidance for September-10 quarter revenues but the company has guided for 5.1% QoQ.
FY11 revenue guidance has moved to 19-21%YY from 16-18%YY earlier despite a 1% headwind from adverse EUR movement. The EPS guidance has been raised as well.
These are meaningful signs of confidence from any company but coming from Infosys, they draw a line in the sand that proclaims robust demand and visibility of growth despite the macro-economic chatter heard from Europe recently.
We believe that our street high estimate of 25-26%YY $-revenue growth for FY11 is reasonable.
BUY on the stock is maintained with a target price of Rs 3,500,” the report said.
Source http://economictimes.indiatimes.com/Buy-on-Infosys-with-target-of-Rs-3500-CLSA/articleshow/6162481.cms
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