Fw: Investor's Eye: Pulse - GDP growth moderates to 6.9% in Q2FY2012; Update - Infosys

 

 

Investor's Eye [November 30, 2011]  Sharekhan www.sharekhan.com

Summary of Contents PULSE TRACK GDP growth moderates to 6.9% in Q2FY2012 STOCK UPDATE Infosys       Cluster: Evergreen Recommendation: Hold Price target: Rs2,772 Current market price: Rs2,607 Infosys warns of a guidance miss Infosys warns of a guidance miss. Is it extra conservatism or further macro deterioration?  Infosys' recent management commentary saying it could possibly missing the upper end of the revenue guidance for Q3FY2012 and FY2012 has again raised concerns about the sector. K Balakrishnan, CFO, Infosys has said that "in an uncertain environment like this, it is very difficult to say if we will meet our third quarter guidance of revenue growth of 3.2 - 5.4% and in turn the FY2012 revenue guidance of 17.1-19.1%." Valuation: In the last two weeks Infosys' stock has corrected close to 7% owing to subdued market conditions and growing apprehension on the sector's fundamentals. Going forward, news flows will dictate the stock performance in the near term and the Street will keenly wait for Q3FY2012 earnings next month to get more clarity on the future roadmap. We continue to remain cautiously optimistic on the sector and maintain our Hold rating on Infosys with a price target of Rs2,772.   "Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a postition in the companies mentioned in the article."   Click here to read report: Investor's Eye

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