Wipro shares jumped as the company will divest its hosted data centre services business to Ensono, an IT services provider, for $405 million, as it seeks to increase its focus on digital.
Further, Wipro and Ensono have also signed a long-term partnership agreement to jointly address the IT requirements of Wipro’s new and existing enterprise customers.
Wipro stock rose as much as 2.1 per cent to Rs 300, and was the top percentage gainer on NSE index.
With this divestment and partnership, Wipro can focus more on digital while at the same time continue to offer infra management services, say Credit Suisse analysts in a note.
“Profitability of this business might be below company average, hence the EBIT impact would be low,” Credit Suisse says. It has rated the stock as “underperform' with a target price of Rs 290.
Four of 41 brokerages have rate the stock as “buy” or higher, 13 ”hold” and 24 “sell” or lower; their median price target is Rs 295.
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