ADRs in Focus: Infosys shares rise

In a client note, Citi Investment Research analyst Surendra Goyal said Infosys has enjoyed higher customer confidence in the past two months as banks raise capital and clients finalize their budgets.

In addition, the company's banking, financial services and insurance segment should continue to grow along with the rest of the company thanks to better offshoring business, Goyal said.

Goyal called Infosys "one of our top picks in offshore IT services" and maintained her $54 price target, implying an expected gain of 16 percent on Wednesday's close of $46.69.

Separately, Kaufman Bros. analyst Karl Keirstead noted shares have climbed sharply since the company reported quarterly results in April and said he is re-evaluating his previously cautious approach to the company.

He said Infosys has expressed confidence in its guidance and added that the company's margins appear to be improving because of a more favorable rupee.

American Depositary Receipts of Infosys rose $2.68, or 5.7 percent, to $49.37 in afternoon trading. ADRs are securities designed to allow U.S. investors to trade shares of companies based overseas.

The broader ADR market climbed Thursday. The Bank of New York Asia ADR Index gained 2.18, or 1.3 percent, to 166.46.

The Bank of New York Composite ADR Index added 3.69 points, or 2.1 percent, to 181.52.