INFY - Embedded Expectations Analysis - 2019 03 20
Infosys Limited (INFY:USA) currently trades below historical averages relative to UAFRS-based Earnings, with a 19.5x Uniform P/E, implying bearish expectations for the firm. Moreover, management appears concerned about their revenue and margin guidance, digital consulting capabilities, and momentum in account acquisitions.Specifically, management may lack confidence in their ability to meet revenue and margin guidance, and their ability to maintain operating and free cash flow levels. In addition, they may be exaggerating their digital platform efficiency capabilities and ability to introduce digital specialists into large accounts. Furthermore, they may be exaggerating investment tracking improvements, momentum in account acquisitions, and the quality and utility of their offerings. Additionally, they may be concerned about headwinds related to declines in buy-side AUM and changes in IT client sector and geography.
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