Market Overview

UPDATE: Edelwiss Downgrades Infosys to Hold on Limited Upside Post Strong Quarter

Related INFY
Earnings Expectations For The Week Of July 7: Alcoa, Wells Fargo And More
Benzinga Weekly Preview: Markets Looking For Hints From The BOE About A Rate Hike

Edelwiss downgraded Infosys (NASDAQ: INFY) from Buy to Hold.

Edelwiss noted, "Infosys gained momentum in a seasonally weak quarter. The company posted organic growth of 4.2% QoQ (6.3% incl. Lodestone) versus Street estimate of 3.5%. EBITDA margin at 28.5% was in line with Street estimate. Further, the company maintained its FY13 organic revenue growth guidance at 5% in USD terms (incl. Lodestone guidance of 6.5%). Although we remain positive on the stock and believe the company will be a significant beneficiary of margin improvement once growth returns, we believe the sharp price movement (~16%) builds in current positives. Hence, we prefer to wait for visible signs of improvement to re-rate the stock."

Infosys closed at $43.95 on Friday.

Posted-In: EdelwissAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

Most Popular

Related Articles (INFY)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free

Benzinga Professional