Infosys downgraded to Hold from Buy at HSBC

HSBC downgraded Infosys to Hold from Buy with a price target of INR 1,760, up from INR 1,620. The stock’s valuation gap to TCS has now come down to only 10% and near-term growth and margin outlook for TCS seems better, the analyst tells investors in a research note. The firm still expects some normalization of growth for Infosys but says market expectations run high for fiscal 2025. Additionally, the company’s margin outlook and large deal ramp-ups “concern” HSBC.