Infosys loses as UBS downgrades

Infosys is currently amongst the top losers on the BSE, down almost 2%  or losing around Rs.60 at Rs.3102, an intra day low point at the moment.

The stock is in the red after some foreign brokerage houses put out ‘sell’ calls on the stock. UBS has in fact today downgraded the stock to “sell’ from its earlier stand of “buy” and has also cut its target price to Rs.2750 from Rs.4050, which is really a huge cut. The FII has downgraded the stock saying that the big IT company is expected to take much longer than anticipated to get fully out of the woods, what with so much churn happening at the top management level.

The report put out by UBS is pretty negative, citing reasons like slower than-expected revenue growth, inability to sour growth in its infra and BPO businesses and all this resulting in lower margin growth.