PINC Research has maintained its sell rating on Infosys Technologies with a price target of Rs 1050 in its April 15, 2009 research report.
“Infosys Technologies missed Q4FY10 USD guidance and guided for 4.1% decline in USD revenue for FY10. The company guided for operating margin erosion of 300bps and net income margin erosion of 100bps for FY10. The customers remain wary about their IT spends. Infosys revenue de-grew by 4.3% to USD 1121 million (guidance of USD 1149 million) in USD terms. Revenue for NA and Europe de-grew by 2.5% and 7.2% QoQ in rupee term respectively. In terms of segments, the largest vertical BFSI de-grew by 7.9% QoQ, whereas telecom de-grew by 2.6% QoQ. This is in line with our expectation and hypothesis.”
“We believe guidance of backend loaded year should be treated with caution. In our view, consensus estimates seems to be aggressive and likely to be revised downward. We reiterate our Sell recommendation with a price target of Rs 1050,” says PINC’s research report.
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