Bank of America Merrill Lynch has reiterated a buy call on HCL Technologies with an upward revision in target price to Rs 990 from Rs 935 a share.
Macquarie has maintained outperform rating with a target price of Rs 304 per share. The research firm cites cess ceiling rates for tobacco at Rs 4.17 per stick or 290 percent ad-valorem. The total tax incidence on tobacco will remain the same, it feels.
The research firm also forecasts cigarette earnings before interest and taxes growth to return to double digits in case of stable taxation in the GST Bill.
Morgan Stanley is overweight on ITC with a target price of Rs 310 per share. It sees stock trending closer to this target. It says the proposed specific cess on cigarettes 6 percent lower than the current tax rate. This reduction will be offset by an increase in GST rate to 28 percent against the VAT rate of 25 percent.
On taxation, it feels that the probability of excise tax being imposed on cigarettes in the first year is low. Against that, it feels that the probability of tobacco cess being entirely specific has increased.
CLSA has a buy call on the stock with a target price of Rs 325 per share. It feels that the overall tax incidence on tobacco is likely to be neutral and considers it positive for the stock. It feels that revenue neutrality seems to be the guiding principle.
Deutsche Bank has also reiterated its buy stance on the stock with a target price of Rs 325 per share. Its initial assessment on GST highlights a positive for the stock on the status quo on taxes. It also feels that the state VAT will be substituted with GST rate of 28 percent.
IDFC has an outperform rating on the stock with a target price of Rs 314 per share. It expects FY18 to be a normal year for the stock, with the possibility of a re-rating if there is a tax neutrality.
Bank of America Merrill Lynch has reiterated its buy call on HCL Technologies with an upward revision in target price to Rs 990 from Rs 935 a share.
The research firm cites strong growth outlook for its largest service line of infrastructure services. It maintained FY18/19 estimates, 5/6 percent ahead of consensus. It feels there is lower than estimated risk from potential US Visa reforms.
ICICI Securities has a hold rating on the stock considering muted near-term growth outlook. It has a target price of Rs 2,864 per share. It foresees a likely delay in resolution of warning letter issued by the US FDA on 2 API plants. The research firm has also reduced earnings estimates by 3-9 percent.
Credit Suisse has raised its target price on the stock to Rs 600 per share on the back of likely higher output. Utilisations for the company are now at 90 percent and falling Chinese exports should be a big advantage to the company, it feels.
JPMorgan is overweight on the stock with a target price at Rs 185. It expects bunching up of 2.87 GW of standalone project announcements in a month. The research firm also sees conclusion of Chhabra acquisition in a month. However, discovery of record low solar tariffs seem to have slowed its solar plans for the near term.
Deutsche Bank has a buy call on the stock with an increased target price of Rs 1,450—a jump of 12 percent. it feels telecom revenue and commissioning of core sector capital expenditure will be key catalysts to the stock.
It expects better refining margin, capex commissioning to drive core business’ EBITDA over FY17-19. Meanwhile, it expects gross refining margins to rise 13 percent y ear on year to USD 6.8 per barrel in 2017.
On Reliance Jio, it expects a break-even in EBITDA in FY19 at a revenue base of Rs 22,800 crore. The key tests for this will be the average revenue per user (ARPU) level and subscription addition base.
(Disclosure: Reliance Industries, the parent company of Reliance Jio, owns Network 18 that publishes Moneycontrol.com.)