Brokerage: Citi | Rating: Buy | Target: Rs 450
The global financial services firm said that it liked DB Corp’s strong position in the regional print space and increasingly in radio and digital media. Further, on the stock’s valuation front, it feels at 14 times FY19 PE, it is attractive and it also maintains a view of a possible buyback going forward. On financials, it forecasts 9%/14% revenue/EPS (earnings per share) CAGR Over FY17-19 on better advertising yields and cost control.
Brokerage: Bank of America Merrill Lynch | Rating: Underperform | Target: Rs 859
The rating has been given by the research firm on the back of expensive valuations and tail risks. It believes that the company could compound earnings in mid-teens over the next 3-4 years. It expects cyclical revival in domestic sales and better pricing to lead to 16 percent earnings in FY17-20. Further, it also sees a rise in yields to 4 percent from FY19 on the back of completion of capex programmes in FY17. In the near term, it said, growth in exports remains a key factor.
Brokerage: CLSA | Rating: Buy | Target: Rs 625
CLSA said that post demonetisation, the company expects to be back on the growth trajectory in the current fiscal. The company’s annual report shows an increase in working capital led by a ramp up of rights acquisition of movies.
Brokerage: Credit Suisse | Rating: Underperform | Target: Rs 300
Credit Suisse sees earnings risks coming to the fore for the company. At the current spreads, the research firm said, the company may recovery any US liquefaction fees. It is updating numbers for weaker LPG/PE margins.
Brokerage: Nomura
The brokerage house said that withdrawal of exemptions by US FDA is a marginal negative. It continues to value the firm on EV/sales, given the significant volatility in near term earnings. Its domestic formulations business is valued at 3.5 times FY18.
Brokerage: Morgan Stanley | Target: Rs 1,300
The brokerage is overweight post SEBI nod for Tier-III alternative investment funds to participate in commodity derivatives.
Brokerage: Macquarie | Rating: Outperform | Target: Rs 1,305
The research firm said that the current disruption in wholesale channels will continue to impact companies like Emami. It believes that the wholesale channels is under significant stress, mainly due to GST. It also sees disruption to continue to impact sales for the next 2-3 quarters.
Brokerage: CIMB | Rating: Reduce | Target: Rs 232
Falling solar power prices would keep ASP and sales volume growth outlook muted, the brokerage said. The muted volume growth would endanger capacity expansion, it added. It also expects Indian coal demand to be adversely impacted by renewables.
Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 920
It expects downstocking to impact in the near term, but the business moat could be intact. It expects re-stocking in the second quarter and a pick up in demand in H2.
Brokerage: JPMorgan | Rating: Underweight | Target: Rs 130
The potential capital shortfall is an overhang, JPMorgan said. It expects elevated NPL slippages to continue in FY19. Rising provision coverage will continue to drag earnings & RoE, it added.
Brokerage: Jefferies | Rating: Buy | Target: Rs 2,590
The brokerage house expects banking or financials to show a soft Q1 as large deals are held off. It expects insurance to kick in the second half of this fiscal, but is likely to help. It sees pressure in near-term but structurally well positioned.
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