Reuters logo
MARKET EYE-Infosys FY13 revenue outlook under threat - UBS
December 7, 2012 / 7:18 AM / 5 years ago

MARKET EYE-Infosys FY13 revenue outlook under threat - UBS

* Infosys' dollar revenue growth outlook of 5 pct for
the year ending March 2013 could be under threat, Chief
Executive S.D. Shibulal was attributed as saying by UBS in an
investor meet.
* Customer deferrals, ramp-downs in a few large projects, delays
in large deal closures and longer-than-expected client shutdowns
due to Hurricane Sandy, especially in the manufacturing sector,
may cause threat to outlook, says a UBS note.
* UBS says not surprised by potential outlook cut, but fears its
own revenue forecast for company at 3.8 pct may be hurt as it
had not factored impact of Hurricane Sandy.
* "Our conversation with Infosys reinforces our concerns on
near-term pressures on guidance. This is likely to impact stock
price over the near term, but we see limited downside from
current levels given the low expectations and cheaper
valuations," says the note.
* Nomura says possibility of an organic revenue growth outlook
cut in the third quarter of current fiscal year remains high. It
prefers companies with current business momentum like HCL
Technologies, Cognizant Technology Solutions 
and Tata Consultancy Services.
* UBS, Nomura both retain "Neutral" rating on Infosys stock.
Shares fall 0.6 percent.
* An Infosys spokeswoman does not have an immediate comment.
* The IT index has fallen 2.73 percent in last two days
after a Cognizant Technology Solutions Corp filing with
the SEC raised concerns about its 2013 revenue outlook.


0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below