Infosys shares rose as much as 2.5% on Monday, November 24, after Motilal Oswal upgraded the stock to a “buy” and increased its target price, implying a potential 39% upside from current levels. The brokerage had downgraded Infosys to “neutral” in March 2025 due to limited growth drivers and unattractive valuations, but now says overall conditions have improved enough to justify revisiting a bullish stance.
Motilal Oswal highlighted that the shift from hardware-driven capex to services-led spending is expected to significantly benefit Infosys’ discretionary-focused business mix. The firm believes Infosys is well positioned to gain from expanding enterprise AI investments, supported by its in-house AI stack, the Topaz suite, and strong application services offerings. It also noted that the stock trades near its 10-year average P/E and at a 13% discount to its five-year average, making valuations appealing.
The brokerage said Infosys’ raised guidance in both quarters of FY26 reflects steady demand and improved visibility. Better-quality revenue, lower pass-through components, and efficiency gains from Project Maximus are expected to boost margins. Motilal Oswal now projects 5.5% growth in FY27 and 8.5% in FY28. Of 51 analysts tracking Infosys, 37 recommend buying, while the stock trades 2.1% higher at ₹1,577 but remains 16% lower year-to-date.
