Prabhudas Lilladher has a reduce rating on Infosys

cmp: Rs 1,135.70

target price: Rs 1,246

Prabhudas Lilladher has a ���reduce��� standing connected Infosys Technologies arsenic it feels that the outlook for the institution and the bundle manufacture is rather anemic successful the near-term.

���While we expect Infosys to execute amended than astir different players successful the industry, we complaint the banal ���reduce��� with a people of Rs 1,246,��� says the report.

With a hard FY10E and full-tax FY11E, the two-year net CAGR (FY09-11) for the institution is improbable to beryllium implicit 10-15%, it adds. According to the broking house, the company���s pricing powerfulness successful caller contracts would stay nether unit arsenic ���pricing behaviour by contention has turned assertive successful caller contracts.���

While Infosys has seen immoderate weakness successful the BFSI domain successful the caller past, the outfit expects this weakness to ���spread to retail and perchance the manufacturing domains arsenic well.��� Of the assorted work lines, Enterprise Solutions whitethorn beryllium worst affected implicit the adjacent fewer quarters, according to the management, it adds. The broking location is besides expecting different simplification successful US dollar guidance by Infosys.