On Thursday, ICICI Securities analysts upgraded Infosys (NS:INFY) Ltd. (INFO:IN) (NYSE:INFY) stock rating from Add to Buy and increased the price target to INR2,250.00 from INR2,140.00.
The upgrade reflects the firm's positive outlook on the company's potential to capitalize on increased discretionary spending forecasted for the fiscal year 2026.
The analysts at ICICI Securities highlighted that Infosys is expected to lead its tier-1 peers in revenue growth for FY26E. This projection is based on the company's impressive record of securing large-deal wins and its significant inclination towards discretionary portfolio offerings compared to its competitors.
In determining the new price target, ICICI Securities valued Infosys stock using a target multiple of 28 times the projected one-year forward earnings of INR 81 per share. This valuation method underpins the raised target price of INR 2,250.
The report also acknowledged potential risks, noting that a slower pace of recovery in discretionary spending could impact the expected growth.
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