Infosys (NYSE:INFY) shares are under pressure today after an unnamed global company terminated its $1.5 billion AI-focused deal with the Indian IT major.
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The deal, announced in September 2023, was expected to leverage Infosys’ platforms and AI solutions to offer improved digital experiences and business operation services to the global partner. However, amid an uncertain environment for the IT industry, the MoU (Memorandum of Understanding) for the 15-year deal has been terminated.
Globally, consumer budgets are tightening and spending trends at enterprises remain uncertain. While the Indian equity markets have been on a roll this year, IT stocks in the country have largely been laggards. Despite rising nearly 21% over the past six months, Infosys shares have delivered a modest 6% price gain over the past year.
Separately, Infosys is slated to announce its third-quarter results on January 11, 2024. Analysts expect the company to post an EPS of $0.18 on revenue of $4.65 billion for the quarter. In the comparable year-ago quarter, INFY’s EPS of $0.19 was in line with estimates.
What is the Price Target for INFY Stock?
Overall, the Street has a Hold consensus rating on Infosys, and the average INFY price target of $17.58 implies a potential downside of 6.3% in the stock.
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