Extending losses from a 13 per cent plunge on Friday, Infosys shares lost another 1.4 per cent on Monday, after a slew of analysts downgraded the stock following its lower-than-expected revenue growth outlook.
CLSA downgraded the country’s No. 2 software services exporter to 'underperform' from 'outperform,' with a 12-month target price of Rs 2,630.
Deutsche Bank cut the stock to 'hold' from 'buy', with a revised target price of Rs 2,400. Macquarie also downgraded the stock to "Neutral", but with a target price of Rs 2,450.
Infosys shares ended at Rs 2,369.35 on the Bombay Stock Exchange (BSE) on Monday, down Rs 33.95 from their previous close.
On Friday, the Bangalore-based firm had said it expected its dollar revenues to grow 8-10 per cent to $7.55-7.69 billion for the year ending March 31, 2013, lower than the expectations of 10-15 per cent forecast by most analysts.
“Mishaps on the HR front, a protracted re-organisation and continued operational slip-ups, all in the past 18 months, have invariably raised the bogey of Infosys losing its magical operational excellence,” said CLSA in its report.
Deutsche Bank said Infosys’ rivals, Tata Consultancy Services and Wipro, were “best positioned to deliver value”, given the clients in the sector were facing budget constraints on their spending.