Motilal Oswal Flags Infosys for 33% Upside to ₹2150
Overview
Motilal Oswal has reiterated its 'Buy' rating on Infosys, setting a target price of ₹2,150. The brokerage cites the company's strategic collaboration with Cognition for deploying an 'AI software engineer' and expects significant benefits from scaled AI deployment in 2026. Current valuations offer substantial upside potential, making Infosys a top pick among tier-1 IT firms.
Stocks Mentioned
Motilal Oswal Initiates Coverage with Strong Buy Call on Infosys
Motilal Oswal has initiated coverage on Infosys with a strong 'Buy' recommendation, setting an ambitious target price of ₹2,150. This valuation implies a significant 33% upside potential from current levels. The brokerage firm views the current market valuations as offering a compelling risk-reward profile, with upside risks heavily outweighing downside concerns.
AI Deployment Fuels Growth Outlook
The firm's positive outlook is primarily driven by the anticipated surge in enterprise Artificial Intelligence (AI) deployment. Motilal Oswal projects 2026 to be a pivotal year for AI adoption by businesses, positioning Indian IT services companies like Infosys to benefit substantially. While acknowledging choppiness in near-term demand signals, the analysis highlights the gradual emergence of a dedicated AI services layer within the industry.
Strategic Partnership with Cognition
A key factor underpinning the recommendation is Infosys's recent strategic collaboration with Cognition. This partnership involves deploying Cognition's "AI software engineer," named Devin, across Infosys's internal teams and client delivery frameworks. This integration is expected to enhance efficiency and capability in handling complex AI-driven tasks, marking a significant step in the firm's AI strategy.
Valuation and Top Pick Status
Motilal Oswal values Infosys at 26 times its estimated Earnings Per Share (EPS) for the fiscal year 2028. This valuation framework supports the ₹2,150 target price. Infosys is highlighted as the firm's premier pick within the tier-1 IT services segment, reinforcing their conviction in the stock's future performance.
