Infosys shares decline almost 4% after Morgan Stanley downgrades stock, cuts target price

Infosys shares fell nearly 4 percent on March 12 after Morgan Stanley downgraded its rating on the stock to ‘equal-weight’ from ‘overweight.’ The brokerage cited concerns over slowing growth and valuation pressures, leading it to slash its target price for Infosys to ₹1,740 from ₹2,150. This revision implies a limited upside potential of just 10 percent from the stock’s intraday low.

“We see downside risks emerging for both the revenue growth of Indian IT services and valuation multiples,” Morgan Stanley said in its note.