Infosys shares were choppy on Friday, a day after Vishal Sikka was named as the first non-founder CEO of the IT major. The stock fell as much as 1.1 per cent before making a sharp recovery. (Track stock)
Most brokerages have welcomed the appointment of Dr Sikka, who worked with global software maker SAP till May 2014. (Who is Vishal Sikka)
Barclays retained its overweight call on Infosys with a target of Rs 3,960. The brokerage said, "With the strong technological background of Dr Sikka and services background of Mr. Rao, we believe Infosys could be uniquely positioned for its next leg of growth."
Pravin Rao, the company's president, was elevated as the new COO of Infosys yesterday.
Deutsche Bank said the appointment of Dr. Vishal Sikka as CEO & MD is a positive development. It retained its hold call on Infosys with a price target of Rs 3,500.
"Given his stature and experience with products and innovation at SAP, he will command the respect of Infosys' leadership team and employees. In addition his strong client relationships can help Infosys win business with new and old customers and improve revenue growth," the investment bank said.
However, Dr Sikka faces a number of challenges to bring Infosys to industry-leading growth rates. Infosys shares have fallen 6.5 per cent in the last three months as compared to a 0.66 per cent decline in the NSE's IT index. (Read the full story here)
As of 10.24 a.m., Infosys shares traded 0.07 per cent higher at Rs 3,168.90 outperforming its peers Wipro (down 0.5 per cent) and TCS (down 1.6 per cent).
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