Daimler has signed a multi-year partnership deal with Infosys aimed at transforming its technology-driven IT infrastructure. The collaboration will enable Daimler to strengthen its IT capabilities while Infosys will develop its automotive expertise.
Daimler (DDAIF) is looking at scaling its IT operations while consolidating its data centers and focusing on innovation. Infosys (INFY) has integrated more than 16,000 employees through other partnerships in recent years with a high acceptance, retention and satisfaction rate, and is well placed to realize this transition as an expert.
Jan Brecht, Chief Information Officer at Daimler and Mercedes-Benz, said about the partnership, “Daimler will take three steps at once to transform its IT infrastructure: consolidation, scaling and modernization.” He added that, “Infosys wants to grow with us in the automotive industry, which gives career opportunities for our employees. With this partnership, Daimler also strengthens its overall technology investment and partnership strategy”
Infosys CEO, Salil Parekh, said, “We are excited about this partnership and the opportunity to support Daimler AG’s automotive vision. Infosys has deep expertise in helping our clients across the globe navigate their digital journeys, and as part of this strategic partnership, we look forward to setting a new standard for the automotive industry.” (See DDAIF stock analysis on TipRanks)
Jefferies analyst Philippe Houchois reiterated his Buy rating on the stock two weeks ago, setting a price target of $85.62. This implies upside potential of around 25% from current levels.
Consensus among analysts is a Moderate Buy based on 12 Buys, 8 Holds and 1 Sell. The average price target of $72.67 suggests upside potential of around 6% over the next 12 months.
Daimler’s share price is up around 26% year-to-date.
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