Friday, March 08, 2013

Infosys surge: another miss for analysts

Infosys surged past Rs 3000 yesterday and has fallen back a bit today. I have no expertise on the IT sector. However, having been in investment banking, I do note with interest- though not with surprise- that analysts completely missed the turnaround in the stock's fortunes.

The big shocker to the analyst community was the favourable revenue guidance given by the company during the last quarter results. That caused analysts, who were predicting a stock price of around Rs 2200 or below in the months ahead, to revise the stock price target upwards. Even then, the higher targets were only around Rs 2850. Some analysts insisted they would wait for another quarter to see if the improvement was sustainable. Then, there was a whole tribe of analysts and media commentators who were telling us that the problem lay with the wrong choice of CEO to succeed Kris Gopalakrishnan, that the exit of most of the founders had changed the company culture completely, etc. So, the stock surging past Rs 3000 is quite a miss for the analyst community.

Of course, in these situations, hindsight is always available. ET, quoting various experts, gives reasons for the stock's improved performance. But the question is worth asking: if analysts can't get it right with a company so visible and so closely tracked as Infosys, what are they there for?

9 comments:

Anonymous said...

I congratulate, excellent idea and it is duly
I apologise, but, in my opinion, you are not right. I am assured. Let's discuss. Write to me in PM, we will talk.
Bravo, is simply magnificent idea
Also what?
It do not agree

[url=http://shenenmaoyif.bravesites.com/][b]michael kors outlet online[/b][/url]
[url=http://shenenmaoyiqwe.futblog.com.br/][b]michael kors outlet online[/b][/url]
[url=http://shenenmaoyif.exteen.com/20130112/how-to-pick-an-ideal-handbag-for-the-promenade][b]michael kors outlet online[/b][/url]
[url=http://cheapbagmk2.webstarts.com/index.html?r=20130118023012][b]michael kors outlet online[/b][/url]
[url=http://cheapoutletbag2.livejournal.com/975.html][b]michael kors outlet online[/b][/url]

Anonymous said...

Dear Sir,

Laconic & Marvellous post....

Analysts have failed to comprehend the market movements, very much similar to the case of Apple (which contrarily declined)

Thank you!

Anonymous said...

excellent writing! But there is room for improvement.

sta said...

Technically infosys was not in bearish trend. It was a bullish stock and moved according to the trend.
mcxtipsfreetrial

Pritam Kumar said...

The visit was useful. Content was really very informative. http://www.giftwithlove.net

Anonymous said...

Pretty nice post. I simply stumbled upon your weblog and wished to mention that I have truly enjoyed browsing your
weblog posts. In any case I will be subscribing for your
rss feed and I am hoping you write once more soon!

cleaning hardwood floors

Stop by my blog post: refinishing hardwood floors

Anonymous said...

This by no means is a full list of things camgirls do.
If you are adventurous and enjoy expressing your sexuality while entertaining others,
webcam entertaining may be the perfect fit for
you. Those are not bad numbers at all for a new online dating website.



My homepage ... Nude sex

Dr.Purushothaman said...

An Excellent Blogpost Relevant to the Topic. It really generates a new thinking pattern in the viewers. Please pursue with your Blogging Activities.
Living In Wellbeing

Anonymous said...

Me and ozzy fucked harder, trying to show to my personal god!
FUCK YES!' prior to cumming inside my warm pussy. were still fucking

my web-site :: hcg injections