Wipro shares jump over 3% after double upgrade from CLSA

Shares of IT major Wipro rose 3.5% on BSE to day’s high of Rs 533.25 after the company got a double upgrade to ‘outperform’ from the global brokerage firm CLSA, making it one of the top gainers on the Nifty50 index.

The brokerage has increased the rating to ‘outperform’ while raising the target price to Rs 607, from an earlier ‘underperform’ rating, with a target price of Rs 431.

The new target implies an upside potential of nearly 18% from the stock’s closing price on BSE as of Friday.

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Wipro, in the last month, had said that a leading US communication services provider has awarded a contract to the company for managed services for some products and industry specific solutions, as per a filing available with the exchanges.

The $500 million deal is expected to be spread over a period of five years. Wipro has not specified which is the leading communication service provider which has awarded them the contract.

Recently, another global brokerage firm Investec had upgraded Wipro from ‘sell’ to ‘hold’ stating that a CEO change may raise optimism of potential change. Large deal wins are beginning to accrue while there is a continued improvement in CAPCO and BFSI in the US. Inestec believes that Wipro has a potential to beat estimates with good execution.

Shares of Wirpo have increased by 36.5% in the last one year with a surge of 11% in the current calendar year, as per BSE analytics. In the last 1 month, the stock has jumped 21.2%.

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