Last Updated: 18 Sep 2024
Executive Summary
Infosys Ltd ADR (INFY) is a leading global IT services company with a strong track record of growth and profitability. The company's latest quarterly results showed continued growth in revenue and earnings, driven by strong demand for its digital transformation services. Analysts are generally bullish on Infosys, with a majority rating the stock as a "Buy" or "Strong Buy." The stock's current price of $22.97 is below its 52-week high of $23.48, but above its 50-day moving average of $21.98.
Company Overview
Infosys was founded in 1981 and is headquartered in Bengaluru, India. The company provides a wide range of IT services, including consulting, application development, infrastructure management, and business process outsourcing. Infosys has a global presence, with operations in over 50 countries. The company's clients include some of the world's largest corporations, including Amazon, Google, and Microsoft.
Fundamental Analysis
Infosys' financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 10% over the past five years. Earnings per share (EPS) have also grown at a CAGR of 10% over the same period. Infosys has a strong balance sheet, with low debt and ample cash flow. The company's profit margins are also healthy, with an operating margin of 21.1% in the latest quarter.
Technical Analysis
Infosys' stock price has been in a bullish trend since the beginning of the year. The stock broke out of a resistance level at $22 in April and has since rallied to a high of $23.48. The stock's 50-day moving average is currently at $21.98, which is providing support for the stock price. The stock's relative strength index (RSI) is also in bullish territory, indicating that the stock is not overbought.
Short Term Outlook
In the short term, Infosys' stock price is likely to continue to trade in a range between $22 and $23.50. The stock's 50-day moving average is providing support for the stock price, while the stock's resistance level at $23.50 is likely to cap any gains.
Long Term Outlook
In the long term, Infosys' stock price is likely to continue to rise. The company's strong financial performance and its position as a leader in the IT services industry are likely to continue to drive growth in the stock price.
Analyst Recommendations
Analysts are generally bullish on Infosys. The consensus analyst rating for the stock is "Buy," with a price target of $21.79. Four analysts have a "Strong Buy" rating on the stock, three have a "Buy" rating, seven have a "Hold" rating, and one has a "Sell" rating.
