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Goldman Sachs Downgrades Wipro Ltd. (WIT) to Sell, Headwinds Remain

September 17, 2017 11:07 PM EDT
Get Alerts WIT Hot Sheet
Price: $5.75 +0.88%

Rating Summary:
    4 Buy, 9 Hold, 7 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Goldman Sachs downgraded Wipro Ltd. (NYSE: WIT) from Neutral to Sell with a price target of $4.81 (from $4.96).

Analyst Sumeet Jain believes the stock is overvalued givens "anemic" earnings growth. The analyst believes the valuation has been maintained by share repurchases and that the current share price levels is not reflective of the company fundamental business. Jain believes shares will underperform due to:

  1. underperforming quarterly revenue growth relative to peers as app services go through a structural slowdown,
  2. market share loss to Indian IT peers in legacy operations and,
  3. continuing uncertainty in the healthcare vertical as it related to the US' Affordable Care Act debate.

For an analyst ratings summary and ratings history on Wipro Ltd. click here. For more ratings news on Wipro Ltd. click here.

Shares of Wipro Ltd. closed at $5.70 Friday.



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