Macquarie has downgraded Bajaj Auto to 'Neutral' from 'Outperform' and revised target to Rs 1,560. Bajaj's realisations declined 3% sequentually led by a 3% decline in domestic realisations because of lower share of Pulsar.
Credit Suisse has an 'Underperform' rating on REC with a target of Rs 167. They expect the company's credit quality to become an issue over the next 12-18 months. Over 50% of REC's exposure is to distribution companies, the segment where power sector losses are concentrated.
Credit Suisse has, however, downgraded ICICI Bank from Outperform to Neutral. They have cut their FY13 earnings for the bank by 10%.
Ambit recommends buying Suzlon with a target of Rs 65. State Electricity Boards are likely to participate aggressively in the last quarter of FY11, as by then they will exactly know the quantum of certificates to be bought by them. If this happens, it is positive for wind power and Suzlon is the only proxy play there.
