Accumulate Wipro, target of Rs 487: Angel

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Angel Broking has upgraded its rating on Wipro to accumulate with a target price of Rs 487 in its July 22, 2009 research report.

"For 1QFY2010, Wipro recorded a 1.7% qoq decline in top-line. Combined IT Service Revenues clocked a 2.2% qoq decline. On the other hand, in US Dollar terms, IT Service Revenues dipped 1.3% qoq (USD 1,032.6 million v/s USD 1,046 million in 4QFY2009). Valuations are not too demanding and given an expected recovery in the global economic environment in 2HFY2010 and particularly FY2011, we believe that the Indian IT Sector will benefit significantly from such an economic up-turn. Wipro, being a top-tier Indian IT company is expected to be a key beneficiary. Thus, we upgrade the stock to 'Accumulate' with a target price of Rs 487, assigning a P/E of 16x FY2011E EPS," says Angel's research report.

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