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Infosys Shares Fall As Global Client Terminates $1.5-Billion AI Contract

Dec 26, 2023 - ndtvprofit.com
Shares of Infosys Ltd. experienced a drop after a global client terminated a $1.5 billion AI contract that was signed in September. The companies have decided not to proceed with the "master agreement", according to an exchange filing by Infosys, India's second largest IT services firm. The name of the client was not revealed when the memorandum of understanding was announced on September 14.

The stock fell as much as 2.55% to Rs 1,523 each, but later reduced losses to trade 1.84% lower. Despite this, the stock has risen 10.15% year-to-date. Out of 37 analysts tracking the company, 21 maintain a 'buy' rating, 16 recommend a 'hold,' and eight suggest 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a downside of 1.2%.

Key takeaways:

  • Shares of Infosys Ltd. fell after a global client terminated a $1.5-billion AI contract that was signed in September.
  • The companies decided not to proceed with the "master agreement", as stated by Infosys in an exchange filing.
  • The stock of Infosys fell as much as 2.55% to Rs 1,523 apiece, but later pared losses to trade 1.84% lower.
  • Despite the contract termination, of the 37 analysts tracking the company, 21 maintain a 'buy' rating, 16 recommend a 'hold,' and eight suggest 'sell.'
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