Global brokerage Bernstein has maintained its ‘Underperform’ rating on Wipro and set a sharply lower target price of ₹200 per share, citing weak Q4 FY25 performance and a subdued outlook for the upcoming quarter. The stock is currently trading at ₹247.60, indicating a potential downside of over 19% from current levels.
Bernstein noted that Wipro’s IT services revenue declined 0.8% QoQ, landing at the lower end of its guided range, and flagged that the company’s Q1 FY26 revenue growth guidance of -3.5% to -1.5% in constant currency was below market expectations. This, the brokerage said, signals negative growth for FY26.
Management has reiterated concerns about an uncertain global macro environment, with clients continuing to hold back on discretionary IT spending. Bernstein believes these headwinds could persist in the near term, impacting revenue visibility and margin expansion.
Given the combination of weak execution, cautious client behavior, and a challenging demand backdrop, Bernstein remains bearish on the stock.
Disclaimer: This article is based on Bernstein’s research note and does not represent the views of the author or publication. Investors are advised to consult a certified financial advisor before making investment decisions.
