Nomura financial Advisory and Securities has maintained 'Buy' on Infosys with revised target price of Rs 3,790 from Rs 3,770 as against current market price (CMP) of Rs 3,327 in its report.

Commenting on the investment rationale, Nomura said, ''While there were improvements at INFO in segments such as the US, BFSI, manufacturing and retail (which have been sluggish in the past two quarters), we believe exceeding the top-end of its guidance will be difficult given the steep asking rate of 3.5% CQGR over 2Q-4Q. However, our thesis of likely margins surprises given material operational scope played out in 1Q with the company posting a 30bps beat on our estimates and 90bps over consensus.

We remain constructive on the stock as the valuation at 14x FY16F P/E (EPS: Rs 231) appears reasonable, although we believe a re-rating will depend on revenue surprises. We maintain our Buy, but continue to prefer HCLT (Buy, HCLT IN) and TCS (Buy, TCS IN). We raise our TP to Rs 3,790.''

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