On Tuesday, Wipro (NYSE:WIT) Ltd. (WPRO:IN) (NYSE: WIT), a global information technology, consulting, and business process services company, received an upgraded stock rating from Nomura/Instinet. The firm shifted its stance on Wipro from "Reduce" to "Buy," and simultaneously raised the price target to INR600.00, up from the previous target of INR410.00.
The upgrade follows the appointment of Srinivas Pallia as the new CEO of Wipro in April 2024, marking a significant leadership change within the company. Pallia, who has been with Wipro since 1992, has held various leadership roles including President of Wipro's Consumer Business Unit and Global Head of Business Application Services. Notably, he served as the CEO for Americas 1, Wipro's largest and fastest-growing market, where he oversaw a diverse range of industry sectors.
Pallia will be operating from New Jersey, United States, and is recognized as the first insider to take the role of CEO at Wipro since 2016. This leadership transition is seen as a positive shift for the company, which has experienced varying management approaches in the past.
Under the tenure of the previous CEO, Thierry Delaporte, from 2020 to 2024, the company reportedly underwent too many changes. Prior to that, from 2016 to 2020, Wipro's management under CEO Abidali Neemuchwala was characterized by very few changes and slow decision-making.
The recent analysis conducted by Nomura/Instinet suggests that the internal promotion of Srini could address the key issues identified during the tenures of the previous CEOs. This strategic move is expected to bring stability and a more effective decision-making process to the company's operations.
Investors and market watchers will be keeping a close eye on Wipro's performance under the new leadership, as the company seeks to capitalize on the growth opportunities within its largest market and beyond.
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