ANALYSTS GIVE THUMBS UP TO PAREKH

Most brokerages are viewing Salil Parekh’s appointment as CEO and MD of Infosys as a positive development. Analysts expect Parekh to hit the ground running as his work profile at Capgemini will largelymatch that in Infosys.

CREDIT SUISSE

Maintains neutral; Price target (PT) ~1,000 Appointment is probably the best outcome for Infosys given his background in consulting, financial services and North America Parekh can fulfill need to invest in new areas and preserve existing culture Need to wait to see if there will be key personnel changes, though risk would be same irrespective of CEO choice

PHILLIPCAPITAL

Maintains buy; PT ~1,060 Incrementally positive; removes “overhang and ambiguity” With three decades' experience in IT services industry, Parekh is expected to handle the operations/work culture better than (Vishal) Sikka

NOMURA

Maintain reduce; PT ~875 CEO appointment was faster than expected While it reduces succession uncertainty, clarity on strategy still needed Fundamental concerns of slowing growth, management attrition, traditional margin levers still continue and clarity will take time Watch for trends in attrition, approach to software and platform-based strategy, whether Nandan Nilekani’s association as non-executive chairman will continue Expect US dollar revenue/EPS CAGRs of 6%/4% over FY17-19

JM FINANCIAL

Maintains buy; PT ~1,110 Selection suggests a preference for tried-and-tested over experimental and execution over conception Transition should be smooth and quick; Parekh’s portfolio at Capgemini overlaps squarely with Infosys Meaningful re-rating for the stock would await a formal articulation of priorities by the new CEO