Infosys Has Limited Upside As Weakening Economy Creates Challenging Backdrop For The Industry, Analyst Says – Infosys (NYSE:INFY)

• BMO Capital analyst Keith Bachman reiterated Market Perform on Infosys Limited INFY and cut the price target to $20 from $21.
• INFY delivered a good quarter with growth and margins ahead of expectations. 
• Infosys reported second-quarter FY23 revenue growth of 18.8% year-on-year to $4.56 billion (CC), beating the consensus of $4.53 billion.
• The Board proposed an interim dividend of $0.20 per ADS, increasing 10% Y/Y, and an open market share buyback of $1.13 billion.
• Further, LTM attrition lowered for the first time in six quarters. 
• However, he thinks a weakening economy creates a challenging backdrop for all IT service providers, including INFY, in CY23, partly supported by INFY experiencing incremental pockets of weakness in industries like telecom. 
• Hence, he remains on the sidelines on INFY as he views limited upside to the multiple at the current juncture. 
• Price Action: INFY shares traded lower by 0.72% at $17.92 on the last check Friday.

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