27 Mar , 2025 By : Debdeep Gupta
Shares of Wipro climbed 2 percent to Rs 273 apiece on March 27 following the announcement of a significant 10-year, $650-million contract with ReAssure UK Service, a subsidiary of Phoenix Group, the largest long-term savings and retirement business in the UK. Analysts at JPMorgan view this agreement as a positive catalyst that is likely to support stock price movement in the near term.
Despite this development, Wipro’s stock has faced downward pressure over the past month, slipping 8 percent, in contrast to the Nifty index, which has gained 5 percent during the same period.
The contract, signed between Wipro and its fully owned subsidiary, Wipro Financial Outsourcing Services, is aimed at providing platform-based life and pension third-party administration services for ReAssure.
Under this deal, Wipro will be responsible for managing essential business operations, including policy administration, claims processing, customer service support, data management, reporting, and compliance.
Global brokerage firm Morgan Stanley weighed in on Wipro's prospects, maintaining an "underweight" rating on the stock with a target price of Rs 265.
While the firm acknowledges the strategic importance of the $650-million deal, it believes that the real impact on revenue growth will be more pronounced in FY26, particularly in the context of an uncertain macroeconomic environment.
Despite this long-term outlook, analysts at Morgan Stanley expect the agreement to boost sentiment and provide short-term support to Wipro’s stock price.
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