Houseviews: Three stocks that brokerages are bullish on!

Goldman Sachs has added Bharti Airtel to its conviction list with a target of Rs 475. Any potential license cancellation of new entrants would reduce competition.

February 06, 2012 / 10:03 IST

Goldman Sachs has added Bharti Airtel to its conviction list with a target of Rs 475. Any potential license cancellation of new entrants would reduce competition. Even if the new entrants re-bid again to acquire spectrum, their financial position would be weaker. Thus, giving bargaining power to operators like Bharti to raise tariffs

JP Morgan is overweight on Tata Steel, but has cut its target to Rs 605. Third quarter earnings weakness is unlikely to materially impact the current rally. While a headline loss could cause some weakness, Tata is likely to be bid up again given the risk on trade, no macro shock in Europe, improving newsflow on European steel prices and still cheap valuations.

Also read: Current rally may not sustain for long, says Sudarshan Sukhani

RBS recommends buying PFC with a target of Rs 273. Earnings were largely in line with forecasts. Spreads remain under pressure, led by rising cost of funds. Disbursements and loan book growth remain healthy. Valuations look attractive at current levels.

Bank of America Merrill Lynch maintains underperfomr on JP Infra with a target of Rs 44. They believe the best of real estate operations for the company is behind us, the expressway will continue to be an overhang on earnings. JP Infra is likely to struggle to repeat the success of Noida land in its other parcels.