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Investing.com - CFRA has lowered its price target on Wipro Ltd. (NYSE:WIT) to $3.00 from $3.20 while maintaining a Hold rating on the stock. Currently trading at $2.65, Wipro maintains a "GREAT" financial health score according to InvestingPro analysis, with the stock trading near its 52-week low of $2.58.
The research firm based its new target on a 21.5x FY26 P/E multiple, which is largely in line with Wipro’s historical average forward price-to-earnings ratio. The company currently trades at a P/E of 18.68x, suggesting potential undervaluation according to InvestingPro’s Fair Value analysis.
CFRA maintained its FY26 EPADS estimate of INR11.96 and FY27 EPADS of INR12.61, projecting year-over-year growth of -5% and 5% respectively for these periods.
The firm forecasts revenue growth of 1% in FY26 and 6% in FY27, citing Wipro’s strong deal pipeline and expected resumption of growth in most units as positive factors, while noting potential trade policy risks that could affect sectors like manufacturing.
CFRA expects Wipro’s operating margins to remain stable at approximately 17.0% through FY26-FY27, as efficiency initiatives offset competitive pricing pressures and growth investments, though the firm believes Wipro will continue to lag behind its peers in growth metrics in the near term.
In other recent news, Wipro Limited reported a 1.2% year-over-year increase in net income to $365.6 million for the second quarter ended September 30, 2025. However, the company’s earnings per share of $0.03 fell short of analyst expectations, which were pegged at $0.04. Revenue for the quarter was $2.56 billion, closely aligning with the consensus estimate of $2.57 billion, marking a 1.8% year-over-year growth and a 2.5% sequential increase. Additionally, Investec upgraded Wipro’s stock rating from Hold to Buy, citing a strong order backlog and deal pipeline as key factors. Investec also raised its price target for the company to INR285.00 from INR272.00. Wipro’s quarter-over-quarter growth in constant currency terms for the second quarter was 0.3%, matching Investec’s flat quarter estimates. The company has provided guidance for the third quarter of fiscal year 2026, projecting growth between -0.5% and 1.5% quarter-over-quarter. These developments highlight recent shifts in Wipro’s financial landscape and market positioning.
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