Citi upgrades Infosys to buy, stock gains

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Citigroup upgrades Infosys to “buy” from “neutral and raises its target price to Rs 2,750 from Rs 2,700, in a rare bit of recent positive news for the Indian software services exporter.

Citigroup says despite near-term risks such as a falling currency, valuations are compelling at current levels of around 14 times forward year earnings vs 23 times at the same time last year.

Infosys shares have dropped 15 percent as of Wednesday’s close since disappointing investors with its revenue forecasts.The stock is up 1 percent today at Rs 2368.95.

Reuters