Morgan Stanley bullish on Infosys share price amid Buyback news, raises target beyond offer

Since the Buyback offer has launched Infosys shares have been surging since then with a marginal correction and has jumped near three per cent in the last five sessions on the BSE. In this regard, a brokerage firm Morgan Stanley is bullish on the stock and has also raised the price target. 

Maintaining an Overweight Stance, Morgan Stanley believes the share price of Infosys will rise relative to the country’s index over the next 60 days. The stock would grow leading to revenue growth as compared to its peers in the current fiscal.  

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Morgan Stanley has set a price target of Rs 1800 per share, while the company proposed Rs 9200 crore buyback shares at a maximum price of Rs 1,750 apiece. This was announced during quarter four results on April 14, 2021, however, it has been launched from June 25, 2021. 

The brokerage expects Bengaluru-based information and technology company to raise its revenue guidance over the coming quarters. It mentions, the company’s strong deal and good commentary estimate that there is a huge growth opportunity going forward. 

The stock on Tuesday closed flat, declining by half a per cent to Rs 1562.6 per share on the BSE.  It touched a day’s high of Rs 1573.7 per share, which was near to Tuesday’s close of Rs 1571 apiece. 

In its filing to exchanges, the company issued an announcement on June 23 in various newspapers for the buyback of its equity shares from the open market through the stock exchange route.  

Kotak Mahindra Capital Company Ltd was appointed as the manager of the buyback, it added.  

The offer to remain open till December 24, 2021, as the last date for the buyback or six months from the date of the opening of the buyback (whichever is earlier). When the company completes the buyback by deploying the amount equivalent to the maximum buyback size.