Wipro Ltd. (WIT) PT Lowered to $155 at JPMorgan

JPMorgan analyst Ankur Rudra lowered the price target on Wipro Ltd. (NYSE: WIT) to $155.00 (from $160.00) while maintaining a Underweight rating.

The analyst comments: “1Q print was mixed, with in-line revenues but a sharp miss on margins. Revenues declined 1.2% CC QQ (-2% org) with drags in Energy and Mftg, Healthcare and BFSI. Overall deals TCV was soft at $3.4bn (-2% QQ, -32% YY) and large deal TCV at $1.6bn (+13% QQ, -39% YY) as some deals were pushed out to 2Q. 2Q CC QQ revenue guide at -1.5% to +0.5% overall and -2.25% to -0.25% org (ex Olam and Alpha Net Consulting) is weak. Management highlighted continued macro and geopolitics led uncertainty leading to a softer demand environment and delays in decision making and deal closures as the rationale behind the weak guide. Ebit margins declined 130bps QQ to 16% due to headwinds from wage hikes, large deal ramp ups, and investments in AI. Wipro targets to return to its band of 17 17.5% margins, but this will be more gradual over the next few quarters. We cut revenues by 1-3%, driving 2% EPS cuts over FY28-29E; FY27E EPS goes up mainly due to FX gains and a lower tax rate. We remain UW as we continue to expect Wipro's organic revenue decline to continue in FY27 (fourth year of decline) and lag peers on growth.”

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