BMO Raises Infosys Target Price

BMO Capital said Monday it is raising the price target on Infosys to $16 from $15 while reiterating a market perform rating.

The broker said the company’s quarterly results exceeded both its and the Street’s expectations, noting that foreign exchange rates probably helped revenues and delayed wage increases helped margins. “We believe INFY…will face trade-offs to grow revenues while maintaining margins, particularly as on-site mix increases to support digital revenue growth,” BMO analyst Keith Bachman said in a note. “Net, we think the quarter was good enough, and likely needs only in-line results to support the shares at current levels, though we don’t foresee catalysts.”

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