Morgan Stanley has downgraded LIC Housing to equal-weight from overweight with target cut to Rs 560 from Rs 700 per share. It says meaningful cut by banks raised risk of higher prepayments pressure for housing finance companies.
Here are 9 stocks that brokerage firms are focussing on today.
Housing finance companies
Credit Suisse has cut SBI’s earnings by 9 percent but continue to be positive on the stock.
It remains overweight on LIC Housing with target cut to Rs 620 from Rs 670 per share.
It is overweight on Shriram Transport, target at Rs 1070 per share
It is overweight Indiabulls Housing, target at Rs 860 per share.
It is overweight on Shriram City, target at Rs 2,210 per share.
It is overweight on M&M Financials, target at Rs 320 per share.
It is neutral on Bharat Financials, target at Rs 700 per share.
It is underweight on Bajaj Finance target at Rs 600 per share.
Morgan Stanley has downgraded LIC Housing to equal-weight from overweight with target cut to Rs 560 from Rs 700 per share. It says meaningful cut by banks raised risk of higher prepayments pressure for housing finance companies. It cuts FY17/18/19 EPS estimates by 1/16.5/22 percent on lower NIM and loan growth. It cuts average NIM estimate for FY18-19 BY 35BPS & FY16-19 loan CAGR to 12 percent from 16 percent.
Citi has cut FY17/18 EPS by 10 percent each & revenue by 9/12 percent with revenue target cut to factor in impact on sales due to demonetization. It maintains buy call due to strong distribution network and established brand but target cut to Rs 401 from Rs 445 per share.
Citi cuts target to Rs 1730 from Rs 1735 per share factoring in share buyback and trends from first half. It says FY 17-19 EPS unchanged as share buyback impact is offset by interest income fall. It says share buyback should aid in roe improvement to 20.7 percent in FY19 from 16.3 percent in FY16.