Infosys (NSEI:INFY) Stock Fair Value Falls After Analysts Cut Targets On Weaker Outlook

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Infosys now sits on a lower implied fair value, with the updated price target in the model moving from about ₹1,395.13 to roughly ₹1,199.02, a cut of around 14%. This shift lines up with more cautious research coverage after the Q1 miss and guidance reset, as analysts weigh weaker organic growth, pricing pressure, and AI related productivity effects against the current valuation. As you read on, you will see how these target changes fit into the broader Infosys story and what to watch as the narrative evolves.

Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value Infosys.

What Wall Street Has Been Saying

🐂 Bullish Takeaways

Several firms, including Wells Fargo with its Equal Weight rating and US$11 target, point out that Infosys trades at a valuation they describe as not onerous. Some investors may see this as a partial support for the stock while they wait for clearer growth signals. Stifel, which set a US$13 target, indicated ahead of Q1 that it expected results to support Infosys FY27 guidance. This highlights that some research still sees room for the company to meet its own medium term framework despite recent cuts from other houses.

🐻 Bearish Takeaways

HSBC, JPMorgan, TD Cowen, BMO Capital and Susquehanna all reduced price targets across June and July 2026. Cuts included JPMorgan moving from US$16.80 to US$12.70 and later to US$10.90, and HSBC trimming its target from US$14.24 to US$11.47 and to ₹1,110, reflecting pressure on Infosys revenue guidance, contract issues and pricing. Multiple firms flag execution and growth risks. JPMorgan cites slowing organic growth and a CEO transition, HSBC points to contract termination in energy and manufacturing ramp downs, and BMO, TD Cowen and Susquehanna highlight weaker Q1, a softer FY27 outlook, constrained client budgets and AI related productivity effects that could weigh on Infosys demand and pricing.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!NSEI:INFY 1-Year Stock Price Chart

We've flagged 1 risk for Infosys. See which could impact your investment.

How This Changes the Fair Value For Infosys

Fair value has moved from about ₹1,395.13 to roughly ₹1,199.02, a reduction of around 14%. Revenue growth expectation is now about 3.15%, compared with roughly 3.70% previously. Net profit margin is now roughly 16.19%, slightly lower than about 16.29% before. Future P/E has been adjusted from about 23.09x to roughly 20.26x. The discount rate is now about 15.58%, compared with roughly 15.20% previously.

Story Continues

Never Miss an Update: Follow The Narrative

Narratives connect Infosys' business story to the underlying forecasts and fair value assumptions so you can see what is driving the numbers. They update as new earnings, guidance and news are published, which helps you keep track of how the thesis is evolving.

Head over to the Simply Wall St Community and follow the Narrative on Infosys to stay up to date on:

How Infosys' positioning in AI, cloud and digital services and large AI driven deals is supporting higher value, higher margin work and recurring revenue streams. Why automation, digital transformation and IP led platforms such as Finacle are important for earnings stability, even as the company operates near peak utilization. Key risks from AI related productivity driven pricing pressure, client consolidation, heavy exposure to North America and Europe, and rising wage and compliance costs that could weigh on growth and margins.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include INFY.nsei.

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