Infosys Technologies: Investors Should Stay On The Sidelines, Says William Blair


In a research note issued yesterday, William Blair analyst Anil Doradla maintained a Market Perform rating on Infosys Technologies Limited (INFY) as first quarter results are expected to slightly exceed Street expectations.  No price target was assigned.

Doradla wrote,  “The upcoming quarter will give investors their first indication of whether the recent departures have negatively affected client relationships or if things are business as usual. Either way, we believe there is too much uncertainty surrounding the story heading into the quarter and recommend investors stay on the sidelines for the time being”.

The analyst continued, “We are expecting gross margin to decrease 200 basis points sequentially because of the 3% appreciation of the rupee versus the dollar during the quarter as well as wage hikes and increasing visa costs, while the Street is expecting a 210-basis-point decline”. 

According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Anil Doradla currently has a one-year average return of 2.9% and a 57% success rate. Doradla is ranked #1767 out of 3211 analysts.

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