Morgan Stanley Lowers Wipro Limited (WIT) Target, Cites Sluggish Exit Rate

Wipro Limited (NYSE:WIT) is among the overlooked penny stocks to invest in. On January 19, Morgan Stanley downgraded Wipro Limited (NYSE:WIT) to Underweight from Equalweight, and trimmed the price target from INR270 to INR242. The firm attributes this pessimism to the company’s growth trajectory, saying that fourth-quarter guidance reflects a flattish exit rate in organic terms. Thus, the company will need a significant improvement in consecutive quarterly growth rates to meaningfully enhance its performance.

Keeping this in mind, Morgan Stanley lowered its organic revenue growth estimates for Wipro Limited (NYSE:WIT) by 2.4%, from 4.2% YoY to 1.8% YoY in constant currency terms for FY27. This is based on a gradual ramp-up of contracts over the coming two quarters.

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Three days earlier, Wipro Limited (NYSE:WIT) announced its third-quarter FY25 financial results, achieving 1.4% sequential expansion in IT services revenue to $2.64 billion. What’s even more interesting is that the company was able to report better operating margins of 17.6%, underscoring both efficiency and cost management.

Wipro Limited (NYSE:WIT) is an Indian IT, consulting, and business process services company. Founded in 1945, the company operates through two segments: IT Services and IT Products.

While we acknowledge the potential of WIT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WIT and that has 100x upside potential, check out our report about this cheapest AI stock.

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