Nomura has maintained its buy rating on Wipro with a target price of ₹310 after the IT services firm announced the acquisition of Harman Connected Services for $375 million. The brokerage said the deal enhances Wipro’s AI-powered digital and device engineering capabilities and significantly expands its footprint in embedded software, Internet of Things (IoT), and newer geographies such as South Korea.
Nomura estimates the acquisition could add around 280 basis points to Wipro’s FY27 revenue, though it may weigh on EBIT margins by about 50 basis points in the near term due to integration costs. Despite this, the brokerage believes the opportunity from cross-selling and scaling engineering research and development services outweighs the short-term profitability impact. Nomura said the transaction strengthens Wipro’s positioning in a fast-growing segment of IT services and offers long-term strategic value, justifying its positive stance on the stock.
Disclaimer: The views and recommendations made in this article are those of Nomura. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
