Jefferies sees valuation upside in select IT stocks despite muted growth forecast
Infosys moved higher.
· ET Stocks, Economic Times Markets
Jefferies has identified opportunities for further valuation gains in selected Indian IT stocks. While the sector experienced a sharp rally in October, growth expectations remain muted. Analysts suggest that lack of negative surprises could drive valuations higher. Infosys and TCS were noted for potential rerating, with target prices increased.
The analysis
Against that, the stock is -2.6% on the day at ₹1,130.70, and has returned +8.8% over three months. It sits 33% below its 52-week high, which means a good deal of bad news was already in the price. The it sector has moved +3.9% over the same period, so Infosys is running 4.9 points ahead of its peers.
For Infosys, the question is how much of this is already reflected in the price and how much re-rates the it peer set alongside it.
Market context
- The company directly in focus is INFY.
- Sector exposure: IT.
- The immediate tone of coverage reads positive.
In this story
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