Info Edge has been upgraded to a "Buy" rating by Goldman Sachs, with the target price raised to Rs 8,600 from Rs 5,700. This upgrade is based on a positive outlook for Indian IT companies and a favorable demand environment.

Goldman Sachs highlights the potential for segmental revenue growth, particularly in the recruitment segment, which is projected to achieve a compound annual growth rate (CAGR) of 16% from FY25 to FY28. This is a notable increase from the previous estimate of 8% for FY23 to FY25. Additionally, the real estate platform 99acres is expected to experience revenue growth exceeding 20% in the near future. Info Edge's proptech business is also expected to reach break-even by 2025, supported by its scale and stable competitive dynamics.

The company's stake in Zomato, which makes up nearly 33% of its market capitalization, is contributing to the positive sentiment surrounding the stock. Goldman Sachs believes there are potential upside risks to both earnings estimates and multiples for Info Edge.