Brokerages slash Wipro share price target by up to 27%
Shares of Wipro ended up 0.7 per cent at Rs 187.80 on Thursday, after opening weak in reaction to the result. The Nifty IT index ended down 1.9 per cent at 12,463.60.
For Nomura, Wipro remains its least preferred pick.
Mumbai: Brokerages slashed target prices on Wipro by 2-27 per cent after the company disappointed on the revenue and margin fronts in the March quarter, and also refrained from giving a guidance for the June quarter. Wipro said it will not provide revenue forecast for the first quarter due to business uncertainty caused by the coronavirus outbreak and it anticipated higher cash outflows in the coming quarter to manage the business.
Shares of Wipro ended up 0.7 per cent at Rs 187.80 on Thursday, after opening weak in reaction to the result. The Nifty IT index ended down 1.9 per cent at 12,463.60.
Kotak Institutional Equities said the ongoing financial year is likely to be tough for the information technology industry due to coronavirus but Wipro has an additional challenge of dealing with a CEO change and energising a multi-year underperforming ship. “We do not expect any quick fixes and expect underperformance to continue,” said Kotak. CLSA has cut revenue estimates for Wipro over FY21-FY22 by 8-9 per cent, margins by 50-100 basis points and EPS estimates by 7-9 per cent. “We expect the company to remain at the bottom of its peer growth range in FY21 due to persistent execution challenges,” said CLSA, cutting target price by 23.4 per cent to Rs 180.
For Nomura, Wipro remains its least preferred pick.
