The upward movement in Infosys stocks on Monday led to the intraday rise in BSE and NSE. Infosys shares surged after Citi maintained a ‘buy’ rating on the Nasdaq-listed IT major with a target price of Rs 1,725, which is more than a 14% upside from its closing price on Friday. Citi outlined that the Infosys management is bullish on delivering on its revenue guidance for the year ending March 2023.

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The Infosys stock rose as much as 2.2% to Rs 1,545 per share on BSE.

The software exporter’s margin, however, will likely be at the bottom end of its guidance band of 21%-23% for the year, according to the brokerage.

The brokerage considers a prolonged slowdown in the US and European markets, a stronger rupee and immigration reforms as key risks for the IT sector.

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Bank of America (BofA) Securities maintained a ‘neutral’ call on Infosys with a target price of Rs 1,535 per share.

The BofA said the company’s strong deal pipeline provides excellent visibility for the September quarter and the remaining financial year ending March 2023. It also said that mini headwinds in demand remain confined to lending or mortgage sub-segments of financial services and retail, according to a report by CNBC TV18.

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Tailwinds for the Infosys stock include pyramid improvement and employee utilisation, according to BofA. It also said that investments in Europe could help the company on a near-term basis.

BofA sees the remaining component of the annual hike, and a potential increase in travel and facility expenses as key headwinds for the company, the CNBC TV18 report added.

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Infosys’ share buyback period ended on Wednesday, September 8, 2022. In September 2021, Infosys bought back more than 5.58 crore equity shares under its buyback offer worth around Rs 9,200 crore.

Infosys shares were trading 1.86% up at Rs 1,540 per share at 1.55pm at the BSE.