Infosys (INFY) has inked a 5-year strategic partnership deal with U.S.-based Frost Bank to provide strategic business consulting and digital capabilities, thereby helping the bank offer new mortgage loan products over and above its other consumer loan products.
Shares of the Indian multinational information technology company, with a current market capitalization of around $100 billion, have gained 69% over the past year. (See INFY stock charts on TipRanks)
Infosys will utilize its strong expertise and years of experience in the independent mortgage solution space in the U.S. and help Frost Bank develop a competitive advantage in the mortgage solutions business.
Per the terms of the deal, Infosys will help the bank streamline the entire mortgage value chain from origination to servicing, create a superior end-customer experience, accelerate new product launches, and choose the most effective technology platform to efficiently manage operations.
Mohit Joshi, President at Infosys commented, “At Infosys, we have built strong capabilities in transforming mortgage businesses by providing our clients with unique solutions that meet their customers’ expectations of speed, transparency, convenience, and personalization.”
Bernstein analyst Rahul Malhotra recently reiterated a Buy rating on the stock and increased the price target to $26.11 from $23.58 (11.7% upside potential).
Consensus among analysts is a Hold based on 1 Buy, 4 Holds, and 1 Sell. The average Infosys price target of $20.75 implies 10.1% downside potential from current levels.
TipRanks data shows that financial blogger opinions are 87% Bullish on INFY compared to a sector average of 71%.
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