The Infosys Stock May Be On The Path To Recovery

Infosys Ltd. has crossed its 50 and 100-day moving average after its founders and the present management struck a conciliatory note on Monday. In technical analysis this signals a potential rally.

Forty three out of 54 analysts tracked by Bloomberg have a 'buy' rating on the stock.

According to Bloomberg consensus, with a 12-month price target of Rs 1,159, the stock has a return potential of nearly 18 percent from current levels.

Infosys’ price-to-earnings ratio currently stands at 16.5 times, much below its previous 5-year average of 19.3 times.

The company’s earnings have positively surprised consensus for 6 of the last 7 quarters.

With the company's board dispelling concerns over corporate governance, Infosys may be set for an upmove.

Also Read: Rajiv Bansal’s Severance Pay Issue Could Have Been Handled Better: Infosys Chairman