On Thursday, Morgan Stanley (NYSE:MS) maintained its Underweight rating on Wipro (NYSE:WIT) Ltd. (WPRO:IN) (NYSE: WIT) with a steady stock price target of INR421.00. The firm recognized Wipro's recent achievement in securing a significant contract in the United States, which adds to the credibility of the CEO, given his previous role overseeing the U.S. business unit. This new deal is notable as it was won amidst a period of weak discretionary spending.
Wipro's track record of large deal wins has been consistent, with the average total contract value for significant deals exceeding $1 billion over the past eight quarters. While such deals have been a regular occurrence for Wipro, the announcement of mega-deals has been irregular. Morgan Stanley pointed out that these large contracts do enhance the visibility of Wipro's revenue growth.
The firm further noted that although these deals contribute to the company's revenue visibility, Wipro's near-term growth might still fall short when compared to its peers. As a result, until Wipro can close the growth gap with its competitors, the disparity in the price-to-earnings (P/E) multiple is likely to persist. This maintains a cautious outlook on the stock despite the positive development of the new U.S. deal.
In other recent news, Wipro Limited has been making significant strides in various sectors. The company has unveiled its AI-driven platform, Wipro Cyber X-Ray, in collaboration with Zscaler (NASDAQ:ZS), aiming to enhance enterprise security decision-making. Wipro shareholders have also approved the appointment of Mr. Srinivas Pallia as the new CEO and the compensation of the former CEO, Mr. Thierry Delaporte.
In the retail space, Wipro has announced an expansion of its retail capabilities with Wipro VisionEDGE+, developed in partnership with Cisco (NASDAQ:CSCO), AT&T (NYSE:T), and supported by Amazon (NASDAQ:AMZN) Web Services. This platform aims to enhance in-store customer experiences by integrating interactive displays, programmatic advertising, and digital endpoints.
The company has also submitted its Annual Report on Form 20-F for the fiscal year that concluded on March 31, 2024, to the U.S. Securities and Exchange Commission, reflecting its commitment to environmental sustainability.
Wipro has reported solid financial results for the same fiscal year, indicating a positive trajectory, although specific figures were not disclosed. These developments highlight the company's recent efforts to enhance its services, leadership, and financial performance.
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