Infosys shares extend losing streak to fifth session; brokerage sees upside - Check share price target

Infosys Ltd shares declined for the fifth straight session on Tuesday, falling as much as 1.7% in early trade. At last check, the counter was trading 1.15% lower at Rs 1,173.60 apiece on the BSE, down from the previous close of Rs 1,187.25. 

The scrip has plunged over 7.5% in the last six sessions alone, including today's trade. Consequently, the market capitalisation of the company slipped to Rs 4.76 lakh crore.

Infosys share price target

Amid the slump in the stock, brokerage firm JM Financial, following a recent management meeting, has retained a ‘Buy’ recommendation on Infosys with a 12-month target price of Rs 1,410 per share, hinting at an upside of 20% from current levels.  

According to JM Financial, the overall demand environment remains stable. The brokerage noted that there is "No material change in demand environment versus the beginning of the quarter". 

The tech major's revenue guidance for FY27E remains intact at 1.5-3.5%, it said. Hitting this target would require a compounded quarterly growth rate (CQGR) ask rate of 0.7-1.4% over the next four quarters, it noted.

The brokerage pointed out that Q1 is unlikely to exhibit similar strength sequentially as seen in Q1 of the last few years largely due to slower volume pickup and a decent Q4FY26 base. 

“FY27E margin guidance remains unchanged at 20–22%. There is 70bps impact on margins due to the Stratus, Optimum and Versent acquisitions on a full-year annualised basis post-closure,” the brokerage said.

The brokerage report also highlighted a 75-100 basis points impact on FY27E revenue tied to one large European manufacturing client. 

“Infosys expects net positive benefit due to AI over medium-to-long term—no change in productivity ask versus the beginning of Q1FY27 while the deal structure will determine whether token costs would be absorbed by service providers or passed on to enterprises,” JM Financial said.