On Wednesday, Morgan Stanley (NYSE:MS) maintained its Underweight rating on Wipro (NYSE:WIT) Ltd (WPRO:IN) (NYSE: WIT) with a price target of INR475.00 ($1 = 82.84 INR). The firm anticipates that Wipro's share price will underperform relative to the country index over the next 60 days.
The assessment follows observations that Wipro's revenue growth has trailed behind its peers for several quarters.
Wipro's recent shift in its deal mix towards smaller transactions was noted as a contributing factor to the subdued revenue growth. This trend was particularly evident in the third quarter, which has led to the current evaluation by Morgan Stanley. The smaller deal sizes are seen as a less favorable development for the company's financial performance in the near term.
The Underweight rating suggests that Morgan Stanley believes Wipro's stock is expected to perform less favorably than other stocks in the same sector or the broader market index. This rating is based on the firm's analysis of Wipro's recent performance and deal dynamics.
The price target of INR475.00 remains unchanged, indicating the level at which Morgan Stanley believes the stock should be trading at, within the given time horizon. This target is based on the firm's projections and analysis of the company's potential performance.
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