Emkay Global Financial Services has recommended a reduce rating on Wipro with a price target of Rs 220 in its March 6, 2009 research report.
“After the Q3FY09 results, Wipro management’s comments have turned increasingly negative driven by acceptance of the macro business challenges. We note that Wipro has already guided for 7% cut in organic revenues for Q4FY09 as compared to more modest expectations in revenue declines for the other Tier 1 vendors. We note that Wipro’s Q4 revenue guidance of USD 1045 million (including USD 20 millon/quarter from the recently acquired CITOS) would also stack a difficult YoY organic revenue growth in case of Wipro as compared with peers. We introduce ‘REDUCE’ rating with a price target of Rs 220,” says Emkay Global Financial Services’ report.
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