Infosys faces rising competition: Barron8217;s

Susquehanna analyst James Friedman told Barron8217;s that the expiration of the tax benefits could push Infosys8217;s tax rate toward or above 25 percent,up from 13 percent in fiscal 2009.

Meanwhile,competition is rising,and Infosys8217; profit margins could suffer if it increases wages to catch up to its peers. Also,the rise in the rupee8217;s rise and any move by India to raise benchmark interest rates to fight inflation could hurt Infosys.

Friedman has a price target on the stock of 37. Shares of Infosys8217;s American depositary receipts closed on Friday at 48.58.