Morgan Stanley has maintained its ‘Underweight’ rating on Wipro with a target price of ₹250, citing limited impact from its latest acquisition. Wipro has signed a definitive agreement to acquire Applied Value Technologies Inc for a cash consideration of $40 million, which includes deferred earn-outs. Morgan Stanley noted that following two major acquisitions — Capco in 2021 and Rizing in 2022 — Wipro’s recent acquisitions have been relatively smaller and “tuck-in” in nature.
The firm believes that this acquisition is focused on capability enhancement and adding marquee clients to Wipro’s portfolio rather than driving immediate financial growth. Given its smaller scale, Morgan Stanley expects this acquisition to have minimal impact on Wipro’s financials for FY25 and FY26. The brokerage remains cautious about Wipro’s overall growth trajectory and does not see this deal altering its current outlook meaningfully.
