Credit Suisse upgrades Satyam, raises Infosys price target

Credit Suisse upgrades Satyam, raises Infosys price target
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First Published: Mon, Feb 26 2007. 10 46 AM IST
Updated: Mon, Feb 26 2007. 10 46 AM IST
Agencies
NEW DELHI: Satyam Computer Services Ltd, India’s fourth-biggest software services exporter was raised to “outperform” from “neutral” by Credit Suisse Group.
Satyam and bigger rivals Infosys Technologies Ltd and Wipro Ltd, also had their 12-month price targets raised by Credit Suisse by between 11% and 39%, citing margin resilience, better pricing and strong overseas demand.
“Strength in overall demand environment, traction with large clients and large deal wins should allow Infosys, Wipro, Satyam and Tata Consultancy Services to attain 33% to 38% year-on-year revenue growth,” analysts Bhuvnesh Singh and Sunil Tirumalai said in a note to clients.
Hyderabad-based Satyam’s price target was raised 39% to Rs625, from Rs450 earlier. Satyam Computer fell Rs10.65, or 2.3%, to Rs448.75 on the Bombay Stock Exchange on Friday.
Infosys, the country’s second largest software exporter, had its price target increased 16% to Rs2,675, from Rs2,300. Credit Suisse maintained an “outperform” rating on the Bangalore-based Infosys.
Infosys slipped Rs51.35, or 2.2%, to Rs2,237.35 on Friday.
Wipro Ltd., the third largest software exporter, was maintained at “outperform” with its price target raised to Rs750, from Rs675 earlier.
Wipro declined Rs30.25, or 4.6%, to Rs623.25.
Tata Consultancy Services Ltd., is India’s largest software company.
India’s software services sector gets more than 60% of its annual sales from the United States. Leading companies are expanding into the Chinese, European and Japanese markets to reduce their dependence on the US.
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First Published: Mon, Feb 26 2007. 10 46 AM IST
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