Goldman Sachs has revised its rating for Infosys (INFY), moving it from "Buy" to "Neutral." This adjustment comes with a reduced price target of $17.90, down from the previous $20.90. The decision was influenced by a decline in near-term visibility and a generally subdued market outlook.
The downgrade is attributed to several factors including recent commentary from industry peers indicating potential project postponements. Infosys itself has pointed to possible delays in decision-making processes. Furthermore, Goldman Sachs anticipates that the challenging macroeconomic environment will continue to exert pressure on discretionary IT spending.
In light of these challenges, Goldman Sachs has also lowered its growth estimates for Infosys following the company's recent earnings report. This reflects increasing concerns about the outlook for Indian IT firms, with growth visibility becoming more uncertain.
