Stock Broking firm ICICI Securities Limited is bullish on Infosys Technology Limited and has given “Strong Buy” call for a time horizon of 12 months to get a target price of Rs 3350 per share.
Current Market Price: Rs 2915 on 18th Apr 2011
Target Price: Rs 3350
Time Horizon : 12 to 15 months
Potential Upside : 15%
According to the Broking firm, the investors can buy the stock on dips with a 12 month target of Rs 3350. Infosys?€? Q4FY11 numbers missed estimates but what surprised was the ?€?too?€? conservative FY12 EPS guidance. Consequently, though we have lowered our FY12E and introduced FY13E estimates, we have changed our rating to STRONG BUY (HOLD earlier) as a further decline in the stock provides attractive entry points.
Valuations : We are adjusting our FY12E and introducing our FY13E estimates. Our estimates assume 18%/13.5% CAGR rupee revenue/EPS growth during FY10-FY13E. We have valued Infosys at 20.9x its FY13E EPS of Rs 160, a discount relative to its historical one year average forward PE of 22x, to account for the longer time horizon. Consequently, we have changed our rating to STRONG BUY with a 12 month target price of Rs 3350 per share.
Share?€?s Data :-
BSE Code : 500209
Mkt. Cap : Rs 167,049.14 Crores
Infosys Technology Ltd. share?€?s CMP is Rs 2,909.25 on 21st Apr 2011.
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