UPDATE: Kotak Institutional Equities Downgrades Infosys to Reduce; Lacking in Execution

Kotak Institutional Equities downgraded its rating on Infosys

from Add to Reduce as the company's execution appears to be lacking. Kotak Institutional Equities noted, "Weak execution and IT spending environment have been the bane for Infosys. Credibility of guidance (whatever little was remaining) has been shattered with multiple cuts. Pricing cuts are worrisome, not only for Infosys but for the rest of the industry and essentially capture lack of demand to accommodate growth aspirations of all players. Infosys is suffering as a result and so will the rest of the industry. We cut EPS estimates for FY2013-15E by 3.0-9.7% and target price to Rs2,350 (from Rs2,850 earlier). Downgrade to REDUCE from ADD—stock is inexpensive but sorely lacking on execution to perform." Infosys closed at $40.79 on Thursday.