TD Cowen analyst Bryan Bergin reiterated a Hold rating and $13.00 price target on Infosys Technologies (NYSE:INFY). The stock currently trades at $11.66, near its 52-week low of $11.55, reflecting a challenging year with shares down 36%.
The firm hosted Sandeep Mahindroo, Controller & Head of IR, for investor meetings. Key topics included enterprise demand, competitive intensity, AI impacts and opportunities, organic investments, and capital allocation.
Infosys remains guarded on the near-term outlook as discretionary spending stays muted and decision cycles slowed in late March and April due to Iran uncertainty. AI-driven deflation is becoming more visible.
The company's positive medium-term view is unchanged, based on six key AI value pools: data, modernization, process/agentification, and governance. It believes these will outstrip AI deflation over the medium to long term. However, a timing gap exists as FY27 growth remains muted.
TD Cowen expects continued scrutiny on volume/revenue conversion, discretionary softness, and AI-driven commercial pressure in the near term.
