Infosys Target Price Set at Rs 1,109 as CLSA Retains Outperform Rating After New CEO Appointment

CLSA retains Outperform on Infosys, target price Rs 1,109. Q1 revenue growth and FY27 guidance cut disappointing, but EBIT margin beat estimates. New CEO led EURS vertical, 31 years at company.

Updated: 24 Jul 2026 • 1:11 pm

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The Infosys target price has been set at Rs 1,109 by CLSA, which retained its Outperform rating on the IT major even after flagging a disappointing revenue growth print and FY27 guidance cut in the June quarter. The brokerage noted that Infosys delivered an EBIT margin beat against estimates and a steady order book, offsetting some of the weakness in the topline outlook.

The Infosys target price call comes alongside a landmark leadership development, with CLSA highlighting that management addressed AI related disruption concerns by appointing a new chief executive from within the organisation, a first in the company's 45 year history.

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Table of Contents

Infosys Target Price: Key Highlights From CLSA

CLSA's note lays out both the near term disappointments and the structural positives behind its Infosys target price of Rs 1,109.

Parameter	Detail
Brokerage	CLSA
Rating	Outperform (retained)
Infosys target price	Rs 1,109
Q1 revenue growth and FY27 guidance	Disappointing
EBIT margin	Beat estimates, order book steady
Leadership change	New CEO appointed from within, led the EURS vertical for 31 years

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Why the New CEO Matters for the Infosys Target Price

The leadership transition is central to CLSA's constructive stance behind the Infosys target price. The incoming chief executive has led the company's EURS vertical and has been with Infosys for 31 years, making this the first time in the company's 45 year history that an insider and non founder will lead the organisation.

CLSA views this as management directly addressing concerns around AI led disruption to the IT services business model, betting on deep institutional knowledge and continuity of culture over an external hire. The brokerage also flagged that Infosys continues to have a highly meritocratic culture, a factor it sees as supportive of long term execution.

Balancing the Weak Guidance Against the Infosys Target Price

The disappointing Q1 revenue growth and reduced FY27 guidance represent the key near term overhang on the stock, reflecting a cautious global demand environment for IT services amid tariff uncertainty and slower client decision making.

However, the EBIT margin beat and steady order book suggest the company is managing costs and pipeline conversion effectively even as topline growth slows, which underpins CLSA's view that the current weakness is largely cyclical rather than structural. The broader Nifty IT index will likely take cues from how the sector digests this mixed set of signals.

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Conclusion

CLSA has set an Infosys target price of Rs 1,109 while retaining its Outperform rating, balancing a disappointing revenue growth and guidance print against a margin beat, a steady order book and a landmark internal CEO appointment. The leadership change, addressing AI disruption concerns with 31 years of institutional experience, is the standout structural positive in an otherwise cautious near term setup. Investors should track execution under the new leadership and consult a SEBI registered advisor before acting on brokerage targets.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

Frequently Asked Questions FAQs

What is the Infosys target price from CLSA?

Ans. CLSA has set an Infosys target price of Rs 1,109 and retained its Outperform rating on the stock, even after flagging a disappointing Q1 revenue growth print and FY27 guidance cut.

Why did CLSA flag Infosys results as disappointing?

Ans. CLSA flagged the Q1 revenue growth and FY27 guidance cut as disappointing, reflecting a cautious global demand environment for IT services, even though the company's EBIT margin beat estimates and its order book remained steady.

Who is the new CEO of Infosys?

Ans. The new Infosys CEO has led the company's EURS vertical and has been with Infosys for 31 years. This marks the first time in the company's 45 year history that an insider and non founder will lead the organisation.

Why is the new CEO appointment significant for the Infosys target price?

Ans. CLSA views the appointment as management directly addressing AI led disruption concerns by choosing deep institutional knowledge and cultural continuity, which supports the brokerage's constructive long term stance despite near term guidance weakness.

What sector does Infosys operate in?

Ans. Infosys operates in the software and IT services and consulting sector, and its target price revisions are closely tracked as a bellwether for the broader Nifty IT index.

Should investors buy Infosys based on the CLSA target price?

Ans. Brokerage targets reflect one view among many and should not be the sole basis for investment decisions. Investors should assess the guidance cut, margin trends and leadership transition risk, and consult a SEBI registered advisor before acting.