Mumbai: Credit Suisse on Monday downgraded the country’s third-largest outsourcer, Wipro, to neutral from outperform and cut its target price to Rs475 from Rs489 earlier. “We were pretty surprised by the weak revenues, as peers have been rather bullish,” Credit Suisse said in a note.
It said Wipro’s performance has lagged Infosys in topline growth both in the near term and also in the longer term, despite nearly a dozen acquisitions by the company in the past seven years.
Last week, Wipro missed quarterly profit estimates as higher wages cut margins, underperforming rivals and sending its shares down. Wipro shares closed down 4.5% on Friday after the results at Rs448.40, while the main stock index shed 0.5%.