12:53 PM EDT, 03/13/2024 (MT Newswires) -- Infosys ( INFY ) management is confident in achieving the targeted earnings before interest and taxes margin range of 20% to 22%, supported by internal project Maximus bolstering a five-tier strategy, Wedbush said Wednesday in a report.

Delayed 2024 budgets indicate a stronger H2, especially in digital project, and recent cost-saving efforts such as re-badging and vendor consolidation will boost short-term revenue growth for the company, the report said.

Vertical demand patterns mirror the previous quarter with banking, financial services, insurance, retail, technology, media and telecom sectors staying soft, while manufacturing and health-care sectors remain strong, Wedbush said. "The UK continues to show strong demand for cost takeout deals, while funding for discretionary work remains soft," it added.

Budgets this year "are still a 'work-in-progress'," and they are expected to be completed by the end of March, representing a 1.5-month delay compared with previous years, Wedbush said. "Similar to peers, the company suggests that enterprise clients peg their spending propensity to the overall macro environment."

Wedbush has an outperform rating on Infosys ( INFY ) with a price target of $22.

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