Jefferies retains Hold on Infosys with ₹1,140 target

INFY Jefferies has reiterated a Hold rating on Infosys Limited (INFY) with a target price of ₹1,140. FY27 revenue growth guidance is at 1–2%, including a 200 bps impact from deal exits. The brokerage noted that accelerated offshoring is being used to reduce US visa exposure. AI revenues contribute 10.5% of the mix, with AI-led services growth expected to support recovery. Easing AI-driven pricing pressure is also anticipated to aid growth. However, workforce reskilling is being prioritized over restructuring, which is likely to limit margin expansion. Wage hikes and furloughs are expected to pressure H2 FY27 margins. The key triggers are the Hold rating with a ₹1,140 target and the muted 1–2% FY27 revenue growth guidance amid deal exits and AI transition. This reflects a cautious stance on near-term growth and margin trajectory. Peers such as TCS, HCL Technologies and Wipro may face comparison on AI revenue contribution and margin outlook. Near-term prices could react mildly, as the view is largely in line with the cautious sector sentiment. Risks include further deal ramp-downs, prolonged AI pricing pressure, or weaker-than-expected margin recovery. Competitors listed: TCS, HCL Technologies, Wipro. We have no financial interest in this news.