Infosys nears lifetime high

Infosys has moved higher by nearly 3% at Rs 3,464, just 1% away from its lifetime high on the National Stock Exchange (NSE).  Shares of IT consulting and software firm had touched a record high of Rs 3,499 on January 4, 2011.

Today, the stock opened at Rs 3,370 and touched a low of Rs 3,355 on the NSE.  A combined 550,553 shares have changed hands on the counter so far on both the exchanges.

Analyst at Prabhudas Lilladher has retains ‘Buy’ on the stock with a target price of Rs 3,900 as Infosys is undertaking cost optimization, improving sales effectiveness and focusing more on the traditional Business IT.

Analyst expect growth rate to get better in CY14 as pipeline and sales cycle witness improvement.

We  expect new initiatives to bear fruits in CY14, with margin improvement expected  sooner than revenue momentum. Hence, there is a scope of narrowing multiple gaps with TCS, analyst said in report dated December 11, 2013.