Credit Suisse upgrades Wipro to 'outperform' from 'neutral'; scrip surges by 3%

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Swiss multinational financial services company has upgraded the shares of IT bellwether Wipro to 'outperform' from 'neutral' on positive factors, including falling employee attrition and improved 'client mining'.

Buoyed by the upgrade, shares of the IT giant gained nearly 3 per cent to trade at Rs 345.35 a piece on the Bombay Stock Exchange.

The upgrade of stocks, which came ahead of its July-September earnings scheduled to come on Friday, is likely to boost the sentiment of the investors.

The Zurich based investment banker said, "The stock has 'significantly underperformed peers and the Indian market over the past 12 months,' and calls valuations 'historical low level' outside of the period during the 2008 financial crisis."

Wipro is also trading at around a 30 percent discount to larger rival Tata Consultancy Services, Credit Suisse added.

However, the investor banker maintained that there is no concrete sign of a pick-up yet and eyes recovery a few quarters away.

Read more about: wipro
Story first published: Monday, October 29, 2012, 23:33 [IST]
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