Infosys share price gains, CLSA sees strong FY16/17, buybacks

Infosys share price gains, CLSA sees strong FY16/17, buybacks

Infosys shares gain 1.7 pct.

CLSA raises target to 2,800 rupees from 2,500 rupees and reiterates high-conviction “buy” rating.

Says Infosys should see stronger revenue growth in FY16/17 as it gains leadership in digital and traditional services while improving client mining.

“We expect it to offer more attractive returns for shareholders through a higher dividend-payout ratio (at least 40 pct) and opportunistic buybacks,” CLSA says.

Also expects greater M&A activity to strengthen its position in social, mobile, analytics and cloud services.