Infosys shares in focus as brokerages react to Australia deal with Telstra
Infosys shares are in the spotlight after the company announced a strategic joint venture in Australia with Telstra, prompting mixed reactions from leading brokerages on its growth impact and valuation.
Morgan Stanley on Infosys: Hold, target price ₹1,700/sh
Morgan Stanley maintained its Equal-Weight rating, noting that the JV with Telstra — involving the Versent Group, which has a blue-chip client base across sectors such as government, education, financial services, energy, and utilities — will strengthen Infosys' local presence in Australia. The brokerage highlighted that the deal builds on the company's existing collaboration with Telstra and that the price paid is reasonable. Assuming a high single-digit margin profile, Morgan Stanley does not expect the JV to dilute EPS.
Nomura on Infosys: Buy, target price ₹1,880/sh
Nomura retained its Buy call after Infosys announced the carve-out deal in Australia, under which it will acquire a 75% stake and operational control in the new entity, with Telstra holding the remaining 25%. Infosys will pay AUD 233 million for its stake, with the deal estimated to add $70 million to revenue in FY26, contributing around 35 bps to overall growth. The brokerage views the acquisition as a positive step in expanding Infosys' global delivery footprint.
The contrasting stances indicate a cautious optimism from Morgan Stanley, focusing on strategic alignment, while Nomura sees a stronger growth catalyst in the deal's immediate revenue contribution.
Disclaimer: The views and recommendations above are those of individual brokerages and do not represent investment advice. Investors are advised to consult certified financial advisers before making investment decisions.
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