On Friday, Citi maintained its Sell rating on shares of Wipro (NYSE:WIT) Ltd. (WPRO:IN) (NYSE: WIT), while slightly increasing the price target from INR490.00 to INR500.00. The adjustment in the target price is attributed to changes in exchange rates and some operational parameters.
The firm has revised its forecasts for the fiscal years 2025 to 2027, considering the latest financial and operational data. The target price revision is based on a consistent valuation multiple of 20 times the projected earnings for March 2026.
Citi's analysis reflects a marginal increase in Wipro's target price, indicating a cautious outlook on the stock despite the updated estimates. The Sell rating suggests that the firm advises investors that the stock might not be a favorable buy at this time.
The new target price of INR500.00 represents a modest increase from the previous target, suggesting that while there may be slight improvements in Wipro's financial outlook, Citi believes the stock is still not poised for strong performance.
Investors and market watchers will likely monitor Wipro's performance closely to see if the company's future financial results align with Citi's projections and whether any further adjustments to ratings or price targets will be warranted.
In other recent news, Wipro Ltd. reported a slight 1% sequential decrease in IT services revenue for the first quarter of fiscal year 2025, amounting to $2.63 billion. However, the company also reported a 6% sequential growth in net income at INR 30 billion and a 10% year-on-year growth in earnings per share at INR 5.75.
Despite these figures, CLSA cut its price target for Wipro shares due to subdued revenue growth, while Jefferies raised its target amid revenue concerns.
Citi maintained its Sell rating on Wipro's stock but increased the price target from INR455.00 to INR495.00, despite a weaker first quarter. On the other hand, Nomura/Instinet upgraded its rating on Wipro from "Reduce" to "Buy," following the appointment of Srinivas Pallia as the new CEO.
These are recent developments that highlight the varying perspectives of different analyst firms on Wipro's performance and outlook. Despite the mixed reviews, Wipro remains focused on strengthening relationships with major clients and strategic partners, and continues to invest in AI-powered industry solutions and talent development.
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