Infosys Has Limited Upside As Weakening Economy Creates Challenging Backdrop For The Industry, Analyst Says

BMO Capital analyst Keith Bachman reiterated Market Perform on Infosys Limited INFY and cut the price target to $20 from $21.
INFY delivered a good quarter with growth and margins ahead of expectations.
Infosys reported second-quarter FY23 revenue growth of 18.8% year-on-year to $4.56 billion (CC), beating the consensus of $4.53 billion.
The Board proposed an interim dividend of $0.20 per ADS, increasing 10% Y/Y, and an open market share buyback of $1.13 billion.
Further, LTM attrition lowered for the first time in six quarters.
However, he thinks a weakening economy creates a challenging backdrop for all IT service providers, including INFY, in CY23, partly supported by INFY experiencing incremental pockets of weakness in industries like telecom.
Hence, he remains on the sidelines on INFY as he views limited upside to the multiple at the current juncture.
Price Action: INFY shares traded lower by 0.72% at $17.92 on the last check Friday.