- Motilal Oswal reiterates Infosys as a structural Buy with a Rs 1,850 target price
- Infosys strengthens AI strategy via partnerships with AI-native firms like Anthropic
- AI services expected to scale from H2 FY27, with growth bottoming in CY26
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Motilal Oswal Report
Infosys Ltd. remains a structural Buy for Motilal Oswal as the brokerage reiterated its positive stance following the company's AI Day 2026, highlighting its strengthened AI‑first strategy and execution roadmap. The brokerage has maintained its Rs 1,850 target price, implying 33% upside from current levels.
Valuation and view
AI-native enterprise applications are likely to depend on legacy service vendors' deep client relationships and delivery capabilities to scale effectively, which could support a gradual sector recovery. Motilal Oswal highlighted that Infosys' growing partnerships with AI‑native firms such as Infosys‑Cognition, Infosys‑Cursor and Infosys‑Anthropic strengthen its execution capabilities and solution stack.
These collaborations should become increasingly important as organizations move toward scaled adoption.
The brokerage believe CY26 should represent the bottoming of the growth cycle, setting the stage for a more meaningful acceleration in H2 FY27 and FY28 as AI services move into scaled deployment.
While concerns around AI‑driven disruption may cap near‑term valuation expansion, Motilal Oswal believes earnings cuts are unlikely and a cyclical recovery is underway.
With the stock trading at 22x FY28E EPS, the brokerage maintains a Buy rating, citing an improving growth runway as AI moves from experimentation to scaled enterprise deployment.
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ALSO READ: Infosys - Anthropic AI Deal Signals Big Shift In Tech Jobs, Not Immediate Cuts
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