World · India Bureau
Wipro shares gain analyst price targets despite growth concerns persist
Major brokerages have raised their target prices on Wipro following its second-quarter results, though analysts remain cautious about the IT services firm's growth trajectory. Weak deal wins and uncertainty around future revenue expansion continue to weigh on market sentiment.
LSN India ·
Leading investment banks Citi and Jefferies have lifted their price targets on Wipro Ltd., signaling modest upside potential for the stock even as they maintain negative ratings on the company. Citi retained its Sell recommendation while Jefferies stayed with an Underperform rating despite the target price increases, reflecting a disconnect between near-term valuations and medium-term concerns.
The tepid analyst sentiment comes against the backdrop of Wipro's second-quarter performance, which showed sequential revenue growth but failed to demonstrate the strong deal momentum investors have been hoping for. The weakness in new contract wins has raised questions about the company's ability to sustain growth in a competitive IT services market facing headwinds from client budget constraints and macro uncertainty.
Wipro, one of India's largest software services exporters, has faced challenges in recent quarters as global enterprises adopt a cautious stance on discretionary spending. The company's order book has reflected this pullback, with deal wins tracking below historical averages and indicating limited visibility into near-term revenue expansion.
Analysts acknowledge that Wipro's current valuation may offer some margin of safety, justifying modest upward target revisions. However, they stress that meaningful upside in the stock would require a turnaround in business momentum and clearer evidence that deal pipeline and growth prospects are stabilizing in coming quarters.