Wipro shares fall 3% after Q1 results, brokerages cut targets

Wipro's shares retreated following the announcement of its first-quarter FY27 results, prompting several brokerages to reassess their valuations. According to reports, Nomura and Nuvama retained Buy ratings on the stock but reduced their target prices in response to weak growth metrics and cautious management guidance. Motilal Oswal maintained its Neutral rating, indicating expectations for continued headwinds throughout the financial year. The mixed analyst response reflected concerns about the company's near-term operational trajectory, even as some maintained constructive longer-term outlooks.

Brokerages highlighted several challenges facing the information technology major, including macroeconomic uncertainty and sluggish deal ramp-ups in key client segments. These factors weighed on investor sentiment immediately following the earnings announcement. However, analysts noted that certain positive catalysts could support the stock's performance over extended timeframes. The consensus view suggested that artificial intelligence-driven demand opportunities and the company's relatively attractive valuation multiples could provide support despite near-term headwinds. The divided brokerage sentiment underscores the market's cautious stance on Indian IT services companies navigating slower deal pipelines and macro volatility, while acknowledging structural growth opportunities from emerging technology adoption in the medium to long term.

Source: Markets-Economic Times