The latest trigger for the stock has come from global brokerage firm Bank of America Merrill Lynch, which has upgraded Infosys to "buy" citing the recent underperformance. BofAML’s target of Rs 3,200 indicates an upside of over 20 per cent from the current market price.
BofAML said a 20 per cent year-to-date underperformance makes the stock attractive. The management has been taking actions to remedy gaps in the services portfolio. Efforts are on towards better execution, which may start yielding results.
BofAML expects in-line second quarter and commentary on improving deal traction will be a trigger for the stock.
Investment Bank Credit Suisse said a 'negative' surprise in Q2 is unlikely unlike the past two quarters. Pricing and margins are likely to be stable.
At 10.10 a.m., Infosys shares traded 1.8 per cent higher at Rs 2,608, outperforming the broader BSE IT index, which traded 0.65 per cent higher.