The tide seems to be turning for Infosys finally as more analysts and brokerages veer towards the view that the worst may be over for the stock. Infosys shares are up 21 per cent since its earnings announcement on Friday in sharp contrast to 2012 when the stock ended as the worst performer on the BSE 30-share Sensex.
Infosys has lost its bellwether tag to Tata Consultancy Services, India's largest IT outsourcer, but the latest commentary from analysts indicate more bullishness for Infosys when compared to TCS.
Hitesh Shah, IT analyst at IDFC Securities, told NDTV Profit on Tuesday that he preferred Infosys over TCS. Infosys is better placed than TCS for growth as the operational performance of TCS has moderated in the past few quarters, Mr Shah added.
Infosys is a "buy" for IDFC Securities with a target of Rs 3,200 while TCS is a "neutral" with a target of Rs 1,430.
Global brokerage UBS has also come out with an aggressive price target for Infosys. UBS upgraded Infosys to a "buy" and its target of Rs 3,350 indicates a nearly 20 per cent headroom for the stock from its current levels of around R 2,790.
Comparing Infosys and TCS peers Wipro and HCL Tech, Mr Shah said HCL Tech's dollar sales are likely to grow by 3 per cent against 2 per cent growth for Wipro, but HCL Tech has little upside in terms of stock appreciation. HCL Tech is set to announce its third quarter results on Thursday while Wipro's earnings are due on Friday.