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 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.
Three days earlier, Wipro Limited 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 is an Indian IT, consulting, and business process services company. Founded in 1945, the company operates through two segments: IT Services and IT Products.
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