UBS cuts Infosys to sell

UBS downgrades Infosys Ltd to "sell" from "buy" and cut its target price to 2,750 rupees from 4,050 rupees, saying a turnaround at the IT outsourcer could take longer than expected.

UBS adds it expects the next wave of growth for the sector to be led by infrastructure services and business process outsourcing, which account for less of Infosys' revenue than competitors such as Tata Consultancy Services Ltd or HCL Technologies Ltd.

UBS also cites Infosys "high" staff attrition and its focus on boosting margins at the expense of stabilising revenue and market share as other risk factors.

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