17,000 new credit cards issued by ICICI linked to wrong users

Shares of the company traded 1.60% higher at Rs 1,587 at around 12.05 pm (IST)

Global brokerage firm Morgan Stanley retained its bullish view on IT major Infosys with a target price of Rs 1,800, indicating an upside of 13% from the current market price.

Shares of the company traded 1.60% higher at Rs 1,587 at around 12.05 pm (IST). On the other hand, the benchmark BSE Sensex was up 284 points, or 0.54%, at 52,833.

Morgan Stanley believes that the share price will rise relative to the country index over the next 60 days. “We believe Infosys will lead on revenue growth versus its peers in FY22 and expect it to raise its revenue guidance over the coming quarters (we expect 15.5% revenue growth in cc terms in FY22 vs guidance of 12-14%),” it added.

The overseas firm further said that Infosys’ strong deal wins and good commentary on pipeline highlights consistent market share gains over the last few years. Furthermore, the company has narrowed the margin difference with Tata Consultancy Services (TCS), which helped in delivering stronger earnings growth.

“We expect Infosys to deliver margins higher than the mid-point of its guidance (22-24%) in FY22. Valuation discount to TCS has narrowed and likely to move in line with that of TCS’s valuation with stronger growth performance,” Morgan Stanley said.

However, it highlighted that loss of traction in new business, rupee appreciation, regulatory risk pertaining to visas in the US and any weakness in macro outlook or disruption in operations from Covid-19 are among the key risks to the downside for Infosys.