Despite strong first-quarter numbers, the brokerages are sceptical about the shares of Wipro, as the majority of them reducing the stock price target. Moreover, after trading at day’s high in the early morning trade, the scrip is trading weak at 0.8 per cent to Rs 571.25 apiece at 11:20 am.

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The stock minutes after market open had jumped over 2 per cent to Rs 589 per share on the BSE intraday trade today, as compared to 0.16 rise in the BSE Sensex at open.

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Execution on revenue growth by Wipro has improved meaningfully, positive surprise drives higher EPS estimates, Morgan Stanley says while maintaining an Underperform stance and cut the price target to Rs 560 per share. It mentions, positive surprise drives higher EPS estimates.

Maintaining an Underperform rating, CLSA says constant currency revenue growth is well above the brokerage’s estimate and company’s guidance. It sets a price target of Rs 560 per share.

The recent run in stock could cap near-term upsides for Wipro, UBS says, maintaining a NEUTRAL rating on the stock. The brokerage says, lower TCV addition could cause some conern and reduces the price target to Rs 470 per share

Defying the majority brokerages, Citi raises the target multiple for Wipro to 28 times from 26 for FY23 after the IT major’s Q1 earnings yesterday. The brokerages' new estimates for revenue growth are 27/11 per cent for FY22/23 and EPS growth of 15/6 per cent. It sets the target of Rs 655 apiece.

Wipro on Thursday reported a 12.5 per cent growth in revenue on a quarter-on-quarter basis, while its margin fell by 17.3 per cent and profit up 10 per cent QoQ in the fourth quarter of FY22.