Infosys (INFY), together with the globally-integrated energy company bp, plans to develop and pilot an “energy as a service” (EaaS) solution. The collaboration aspires to ultimately help clients enhance the energy efficiency of infrastructure, and meet their net-zero carbon goals.
Infosys is a leading provider of consulting technology and next-generation digital services in North America, Europe, and India. (See INFY stock charts on TipRanks)
Per the terms of the agreement, both companies will develop a digital platform that will enable the collection of data from various energy assets and use artificial intelligence to optimize energy supply and demand for power, heat, cooling, and EV charging.
Upon successful completion of the pilot program at the Infosys Pune Development Center, they will work to roll this model out across other Infosys campuses in India to help clients meet their decarbonization goals.
Pravin Rao, COO at Infosys, commented, “Our collaboration with bp further strengthens our long-standing commitment towards sustainability and supports our ambitious ESG goals.”
He further added, “We will now bring together the best of digital technologies – advanced AI, connected digital systems, experience design, analytics – and decarbonization to create an integrated energy and mobility offering.”
After the company’s recent earnings results, Stifel Nicolaus analyst David Grossman maintained a Hold rating and a price target of $22 (2.5% downside potential) on Infosys.
Grossman commented, “Management’s tone on this morning’s call was positive, reiterating well-known themes (accelerating demand for transformational services, particularly cloud) and the ramp of strong FY21 (Mar) bookings.”
Grossman added, “There was considerable focus on elevating attrition rates and wage pressures; however, as we discuss below, tight labor markets generally reflect inflection points in demand and should favor the larger, better-managed vendors like INFY (ACN, EPAM also fit this profile in our coverage).”
Consensus among analysts is a Hold based on 3 Holds and 1 Sell. The average Infosys price target of $22.50 implies that shares are fully-valued at current levels.