05:40 AM EDT, 04/22/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We adjust our target price to USD6.00 (from USD5.50), valuing Wipro ( WIT ) on a higher 22x FY 25 (Mar.) P/E (from 19x), slightly above its 5-year mean P/E to reflect our expectation of a decent EPS growth pickup through FY 26. Notably, we forecast EPS +7% to INR22.25 (trimmed from INR24.16) in FY 25 and +11% to INR24.66 in FY 26. Wipro's ( WIT ) FY 24 result came in slightly below our expectations, with flat EPS at INR20.82 on -1% revenue to INR898 mln. FY 24 EBIT margin were mostly unchanged (-0.1%-pts to 14.9%) as the impact of salary hikes in November 2023 was mostly offset by improving mix of high-value transformation projects. Wipro ( WIT ) reported 25% increase in FY 24 total deal wins by TCV (FY 23: +20%), but we highlight that deal conversions will be challenging amid a weak discretionary IT spending environment. Overall, we stay neutral on the stock given its unexciting earnings growth outlook, although we highlight potential shareholder returns from Wipro's ( WIT ) net cash, currently equivalent to 21% of assets.