Morgan Stanley Upgrades Wipro (WIT) to Equalweight

Morgan Stanley upgraded Wipro Ltd. (NYSE: WIT) from Underweight to Equalweight on June 19, and raised the price target from $2.49 to $3.05. The move follows a period of relative underperformance for Wipro shares since the April market rally, which, according to the firm, has reset the risk-reward balance to a more neutral stance.

The upgrade shows growing confidence in Wipro’s near-term positioning, particularly as momentum improves in securing large deals. Morgan Stanley sees this trend as a leading indicator of revenue acceleration over the coming quarters, marking a potential inflection point for the Indian IT services firm.

A close up view of a person’s hands typing on a computer keyboard, emphasizing internet-based information technology services.

Despite a sluggish top line, Wipro has managed to hold operating margins within a narrow band, which the firm views as evidence of disciplined cost control and resilient operational management amid a tough environment.

Morgan Stanley also highlighted “potential improving capital allocation” as a reason for the more constructive view, pointing to the possibility of more shareholder-aligned financial strategies ahead. This includes better deployment of free cash flow and a tighter focus on returns, both of which could improve sentiment around the stock as execution improves.

WIT is among the 10 best Indian stocks to buy according to billionaires.

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