Prabhudas Lilladher has issued a "reduce" rating for Infosys Technologies with a target price of Rs 1,246. The brokerage believes the near-term outlook for the company and the entire software industry is weak. "While we expect Infosys to perform better than most other players in the industry, we rate the stock 'reduce' with a target of Rs 1,246," the report said. It added that due to a difficult financial year 2010 and full-tax financial year 2011, Infosys's earnings growth rate from FY09 to FY11 is unlikely to exceed 10-15%. Prabhudas Lilladher noted that the company’s pricing power in new contracts will face pressure because competition is aggressively lowering prices. Infosys has already experienced weakness in the BFSI (Banking, Financial Services, and Insurance) sector recently, and the brokerage expects this to spread to retail and possibly manufacturing sectors as well. Among different service lines, Enterprise Solutions may get worst affected in the coming quarters, according to the company's management. The brokerage also expects Infosys to reduce its US dollar revenue guidance once again soon.