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Goldman Sachs knocked off Infosys (NYSE:INFY) from its Conviction Buy List and downgraded the stock to Sell as it believes its current valuation does not factor in “significant” revenue growth slowdown ahead in FY24.

“… we find competition has caught up with INFY over the last 1 year in terms of building competencies and gaining certifications around hyper-scalers and SaaS platforms,” Goldman Sachs said in a note to clients.

The brokerage’s rating contrasts bullish sell-side ratings. Meanwhile, SA Quant’s rating is Hold.

Goldman Sachs upgraded Wipro (WIT) to Buy from Sell, citing attractive valuations as weak organic earnings growth is more than priced-in into current valuations.

“We see a recent pick-up in its order book and strong sequential headcount growth during Q1 as two leading demand indicators pointing in a positive direction for near-term growth,” it added.

Goldman Sachs said a potential share buyback over the next 6-12 months could be a positive catalyst for its Buy thesis on WIT.

The brokerage’s rating is in sharp contrast to bearish sell-side ratings and SA Quant’s Sell rating.

Shares of INFY fell 25.3% YTD, while WIT stock declined ~47%. Both IT stocks dipped ~2% in early trade on Tuesday.

In other news, INFY said it collaborated with Belgium Post (Bpost) to secure cloud environment and build robust cyber resilience for its mail delivery and logistics services.

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