Shares in Wipro gained 2.4% to Rs 344.05 after Credit Suisse upgraded stock to 'outperform' from 'neutral' and raised target price to Rs 415 from Rs 385.
Upgrade comes ahead of Wipro's July-September earnings to be announced on Friday, as Credit Suisse said the stock has "significantly underperformed peers and the Indian market over the past 12 months," and called valuations "historical low level" outside of the period during the 2008 financial crisis.
Wipro is also trading at around a 30% discount to larger rival Tata Consultancy Services, Credit Suisse said.
The investment bank sees no concrete signs of a pick-up yet and warns a recovery may be "a few quarters away", but adds positive factors work in Wipro's favour, including falling employee attrition and improved "client mining."
