Nomura Financial Advisory and Securities its research note said Infosys is on the right path in terms of its strategy, but revenue growth revival will be gradual given key portfolio issues.
As per Nomura, key portfolio issues are smaller presence in faster growing IMS, BPO, engineering services and testing and higher on-premise implementation skew in its consulting and system integration practice.
"We continue to prefer HCL Technologies, CTSH and Tata Consultancy Services to Infosys among our Buy rated stocks on better growth comfort and higher upside possibilities. We look for USD revenue CAGR of 9% and EPS CAGR of 8% over FY15-17F,'' it said
Nomura retained Buy rating on Infosys with target of Rs 1,070.
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