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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Faith is the opium of the masses, so Indians get addicted

    India is a nation of 1.27 billion. Let that number sink in, with all its zeroes. That’s a lot of people.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

M S Swaminathan

Public good research in agriculture

Public good research in agriculture is designed to promote risk ...

Zehra Naqvi

To hell and back

Here is a book that makes you wish there were ...

Bubbles Sabharwal

When your real & reel life heroes are the same

ALL the world’s a stage and we all are merely ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture