NYSE:INFY

22.03
0.28 (1.26%) 1d
0
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

INFY operates as a global consulting firm and is now trading at 21.5x times' Forward P/E. In 1Q-2024, INFY’s revenue grew 4% to $4.62B, beating estimates of $4.61B and EPS was $0.17, slightly missing estimates of $0.18. The balance sheet is strong, with net cash of $1.1B. Over the last few years, the company generated solid cash flow which was returned mostly to shareholders through dividend increases and buybacks, we think the company has shareholder-friendly policies. The share price was under pressure due to the weak guidance for FY 2024, with growth for the whole year expected of around 1%-3.5%. We think given the challenging global economy, we think the result/guidance is acceptable. We would be comfortable holding at this valuation.
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computer software / processing
BUY
Same consultancy space as ACN. Does extremely well when businesses have digitalization issues. Out of India. Services are cheaper than NA offerings. Down about only 12% YTD. Beat on top and bottom, raised guidance. Decent 25% runway over next 12 months. (Analysts’ price target is $25.50)
computer software / processing
BUY

Owned this for a couple years and did very well. A good company that is well run and has a strong balance sheet. The dividend grows. However, he sold it for Accenture which has a broader offering with media and government portions. The price is a little rich but it is high quality.

computer software / processing
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

BUY ON WEAKNESS
Stockchase Research Editor: Michael O'Reilly Outsourcing has become a well known strategy for companies around the world to reduce costs and INFY is a leader in the space. Based in India, the company has clients in 46 countries. The company has no debt on its balance sheet. It generates $0.68 per share in cash and pays a dividend of $0.25 per share. We see this as a good buy on a pullback towards $11.50, with a target to test $14.00 -- over 20% upside. Yield 1.93%
computer software / processing
PAST TOP PICK

(A Top Pick Jul 26/19, Up 14%) Great company, nothing wrong with it. He sold it to put cash into Accenture, ACN, a better company with more global scope.

computer software / processing
TOP PICK
It had a recent dip in share values, so it is a good entry level. They have bought back 5% of its shares. The business is re-accelerating and outsourcing will continue to fuel their business model. Yield 2.24% (Analysts’ price target is $10.95)
computer software / processing
TOP PICK
Thinks we are going to see low interests rates in the next 18 months. It's going to be a constructive environment for low beta - low valuation tick. Has a $3B buyback in process. Paid a special dividend last year. Very very strong balance sheet. Safe and steady story. A cheaper version of Accenture. (Analysts’ price target is $11.20)
computer software / processing
PAST TOP PICK
(A Top Pick Oct 13/17, Up 29%) Indian outsourcing company. $ 50 billion market cap. They benefit from the developed world IT outsourcing. Similar work that IBM is doing.
computer software / processing
DON'T BUY

This is an Indian outsourcing company. The question is whether it can get things done cheaper than anyone else. They don’t do anything special, though they have executed well. He cautions that Indian companies and many other emerging market companies do not have the governance rules that American and Canadian investors have come to expect. Infosys is a huge player but its CFO recently left and there has been other management turnover. He does not see this as positive. This stock has had a big recent run, but this is not a growth stock like Amazon or Google. He would not invest at this price.

computer software / processing
PAST TOP PICK

(A Top Pick July 7/17 Up 19%) The Trump Administration made this a better business as outsourcing became back in fashion. They have more cash flow than debt, a good balance sheet, and an attractive dividend profile. It may be a bit toppy here, but still some upside.

computer software / processing
PAST TOP PICK

(A Top Pick July 7/17. Up 7.81%.) Bought this on the back of the Trump's Pro US/anti-everybody else campaign. A lot of tech sold off. This one dropped dramatically. It’s net cash, meaning there is more cash than debt. The last quarter they grew revenues by 25%. Have been growing revenues and earnings by double digits for the last 15 years. On Nov 1 they started a $2 billion share buyback. He is still buying for new clients.

computer software / processing
TOP PICK

An IT outsourcing company. When Mr. Trump got into power, the first thing he did was to bash all the foreigners, and a lot of the stocks, plus some of the tech stocks, were heavily reliant on this sector. Historically, it has had a very, very strong record of growing earnings something like 20% for 15 years. Very, very strong balance sheet. On Nov 1, they come into a $2 billion share buyback. Dividend yield of 2.7%. (Analysts’ price target is $15.50.)

computer software / processing
PAST TOP PICK

(A Top Pick July 7/17. Down 0.95%.) If you ignore the last year or so, the stock had a fabulous run for about 15 years with double digit growth rates. Over a 3-5 year timeframe, he expects there will be a $2 billion share buyback announced, and the dividend should get increased. He is still buying this for clients.

computer software / processing
TOP PICK

An Indian outsourcing IT company. If you are a large US bank, and need your Visa system incorporated with a new bank you have just acquired, you get a company like this. The stock has had a fabulous run for the last 20 years, but since Pres. Trump got into power, and looking to turn America into “America for Americans” to keep foreigners out, that has impacted the whole IT outsourcing segment, so the stock is down 25%. There is a $2 billion buy share back in the works. Dividend yield of 2.6%. (Analysts’ price target is $15.)

computer software / processing
COMMENT

She likes IT outsourcing. There are 3 of them including TCS Consulting (TCS-T), Cognizant (CTSH-Q) and this one. She doesn’t currently own Infosys or Cognizant because of Trump. There is chatter around the H1B Visa, which typically affects any skilled worker, especially in the Tech sector. She is a little concerned what effect this might have on the business model. Also, even before Trump, there had been a decline in their revenue backlog. The stock is not cheap enough for her to get involved yet.

computer software / processing
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Infosys Technologies Ltd.(INFY-N) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Infosys Technologies Ltd. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Infosys Technologies Ltd.(INFY-N) Frequently Asked Questions

What is Infosys Technologies Ltd. stock symbol?

Infosys Technologies Ltd. is a American stock, trading under the symbol INFY-N on the New York Stock Exchange (INFY). It is usually referred to as NYSE:INFY or INFY-N

Is Infosys Technologies Ltd. a buy or a sell?

In the last year, there was no coverage of Infosys Technologies Ltd. published on Stockchase.

Is Infosys Technologies Ltd. a good investment or a top pick?

Infosys Technologies Ltd. was recommended as a Top Pick by on . Read the latest stock experts ratings for Infosys Technologies Ltd..

Why is Infosys Technologies Ltd. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Infosys Technologies Ltd. worth watching?

0 stock analysts on Stockchase covered Infosys Technologies Ltd. In the last year. It is a trending stock that is worth watching.

What is Infosys Technologies Ltd. stock price?

On 2024-11-11, Infosys Technologies Ltd. (INFY-N) stock closed at a price of $22.025.