Infosys (INFY) revealed that its subsidiary Infosys Public Services (IPS) has completed the pilot of a blockchain solution for Riverside County in the U.S.
Shares of the Indian multinational information technology company have gained 69% over the past year. (See INFY stock charts on TipRanks)
IPS has developed the pilot blockchain network, jointly with Amazon Web Services, Inc. (AWS), using its Amazon Managed Blockchain. The new technology will help digitize the official records, allowing storage, re-creation, and retrieval of verifiable digital records, thereby decreasing the requirement for physical storage.
Like most local governments, Riverside County incurs an annual expenditure of $500,000 for the storage of official records.
The blockchain initiative will not only reduce costs but also enhance data efficiency, access, and security of vital recordkeeping in Riverside County.
IPS, along with AWS, intends to expand the use of blockchain technology across several departments and processes in the future with the aim of increasing efficiency and reducing costs of storage of official records.
IPS CEO Eric Paternoster commented, “Blockchain technology presents a new opportunity for governments to advance their digital agenda and leapfrog into the next era of secure, citizen-centered services.”
He further added, “We are excited about this project with Riverside County Assessor-County Clerk-Recorder Office and appreciate the opportunity to demonstrate how blockchain can enable the county to become more digital, connected, and secure.”
Cowen & Co. analyst Bryan Bergin recently increased the price target on Infosys from $19 to $21 and reiterated a Hold rating. This implies that shares are fully priced at current price levels.
Bergin said, “Broad-based momentum & the timing of large deal signings supported a 200 bps raise to INFY’s FY22 growth outlook. From 2Q forward, INFY benefits from the ramping of FY21 large deals, although the likely magnitude of beat & raise outperformance is apt to be more difficult.”
He further added, “Double-digit growth through FY22 on strengthened services demand and good execution supports its current premium.”
Consensus among analysts is a Hold based on 1 Buy and 3 Holds. The average Infosys price target is $20.75.
INFY scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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