The target price for Wipro Limited (WIT) is $4.88, based on the average of 3 Wall Street analysts' 12-month price targets issued in the past 3 months1. This average target represents a significant downside from the current market price, with a potential change of -25.90% from the last price of $6.41. The highest price target is also $4.75, which aligns with the average target, indicating a consensus on the lower end of the forecast range.
- Analyst Ratings and Price Targets:
- The consensus rating for Wipro is currently "Moderate Sell," with 2 analysts giving a "Sell" rating, 0 analysts giving a "Buy" rating, 1 analyst giving a "Hold" rating, and 1 analyst giving a "Sell" rating1.
- The most recent analyst to revise their price target is Jefferies, who reiterated a price target of $4.75 on April 21, 20241.
- Market Performance and Sentiment:
- Wipro's stock price closed at $5.60 on July 11, 2024, representing a 4.81% increase from the previous day2.
- The stock is currently trading at a premium to its industry peers, with a Price to Book Value (PB) ratio of 3.2, compared to the industry average of 2.593.
- Financial Metrics and Company Health:
- Wipro's Debt to Equity (D/E) ratio has decreased from 0.23 to 0.19, indicating a reduction in debt levels3.
- The company's Return on Equity (ROE) has also decreased from 20.5% to 16.01%, suggesting a decline in profitability and efficiency3.
- Investor Considerations:
- Investors should consider the potential downside in the analyst price targets and the "Moderate Sell" consensus rating1.
- The company's financial metrics show a decrease in debt levels but also a decline in profitability, which may impact investor sentiment3.
In conclusion, while Wipro's stock has recently seen an uptick, the average analyst price target suggests a bearish outlook. Investors should weigh this against the company's financial health and market positioning before making investment decisions.
7/12/2024 06:23pm
