Wipro Sees Major Boost: CLSA Upgrades Stock with Target Over ₹600

Shares of Wipro Ltd., a major IT services company based in Bengaluru, surged by up to 4% on Monday, July 1. This rise made Wipro the top performer on the Nifty 50 index. The increase came after global brokerage firm CLSA upgraded Wipro’s stock rating from ‘Underperform’ to ‘Outperform’. CLSA also raised its price target for Wipro shares to ₹607, up from the previous target of ₹431. This new target suggests a potential increase of nearly 41% from last Friday’s closing price.

CLSA’s positive outlook on Wipro is based on the expectation that there will be no further cuts to the company’s financial guidance for the year 2025. The brokerage also anticipates a revenue growth of 0-2% in constant currency during the second quarter of FY25. Additionally, CLSA noted that Wipro’s discretionary demand is stabilizing.

One of the key factors contributing to this positive sentiment is Wipro’s recent announcement of a $500 million deal this quarter. In a filing last month, Wipro revealed that a leading US communication services provider has awarded them a contract for managed services and industry-specific solutions. This $500 million deal is expected to span over five years. However, Wipro has not disclosed the name of the communication service provider.

Another brokerage firm, Morgan Stanley, also commented positively on the deal, stating that it is a good sign, especially given the current tight environment for discretionary spending.

As of now, Wipro shares are trading 3.37% higher at ₹532.20. Despite this gain, the stock is still 3% below its recent peak of ₹545.90.