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 .
While we acknowledge the potential of WIT as an investment, 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
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