Asian PaintsCiti has a sell call on the stock with target cut to Rs 955 from Rs 985 per share as valuations price in medium-term positives & potential upside post GST.
Bank of America Merrill Lynch maintains buy rating with target at Rs 1260 per share as domestic decorative paints margin up 5 percent.Nomura remains neutral with target unchanged at Rs 930 per share as Q3 results beat estimates at the revenue growth & EBITDA level. Morgan Stanley is overweight on the stock with target at Rs 1280 per share as 3 percent volume growth in domestic decorative business a key positive. It says categories with high unorganised competition will benefit from increase in market share. It expects 20 percent earnings CAGR over FY16-18, one of the highest in our coverage.
JP Morgan is neutral on the stock with target at Rs 920 per share and will watch out for management commentary on demand stabilization. HULCredit Suisse has downgraded it to neutral from outperform with target cut to Rs 875 from Rs 910 per share as recovery in low income consumption a setback due to demonetisation. It could likely see few quarters of subdued volume growth. It has cut earnings by 3 percent for FY17 and 6-7 percent for FY18/19. It prefers ITC due to lower linkage to low income consumption & valuations.
Morgan Stanley is underweight on the stock with target at Rs 750 per share as earnings below estimates but volume growth higher than estimates. It says volume contraction driven primarily by price hike in personal wash category.
Nomura has a buy rating on the stock with target unchanged at Rs 971 per share as results beat estimates at the revenue growth level. It says higher-than-expected ad spends led to a marginal miss at the EBITDA level and expects margins to remain under pressure as input prices continue to rise.
Goldman Sachs is neutral on the stock with target increased to Rs 658 from Rs 654 per share as dependence on well penetrated categories will lead to slower sales growth. It also says high input costs, competition are major key risks.
CLSA has buy call as it continues to like HUL due to its expansive distribution reach as positive surprise in revenue but a negative one in margin. It says pressure were felt throughout, albeit much higher in personal care. It expects acceleration in FY18, aided by the demonetisation base.
Macquarie has outperform with a target at Rs 934 per share and expects inflationary trend to continue on back of firmed up raw material pricing. It says near-term pressure on gross margin cannot be ruled out. It has cut FY17-19 earnings by 3-5 percent on account of demonetisation. It says higher volume growth a major price catalyst for co going ahead.Bank of America Merrill Lynch has set target price at Rs 1000 per share reiterating buy call as demonetisation impact lower than expected. It says upcoming Budget, price hikes, industry consolidation due to GST.
Citi has retained sell rating on the stock with target price at Rs 830 per share as overall trend remains muted
JSW EnergyDeutsche Bank has a hold call with target price at Rs 68 per share on no notification from seller/lenders on revocation of Bina acquisition deal . Citi has a buy call on the stock with target price at Rs 86 per share as management also indicated it is not seeking any fresh capex/investment .
Credit Suisse is neutral call on the stock with target price at Rs 60 per share. It has cut FY17/FY18/FY19 EPS by 18/51/46 percent.
Nomura has reduced call on the stock with target price at Rs 60 per share as near-term outlook weak. It expects consensus earnings cut and sees near-term stock price performance to be weak.
LIC HousingMorgan Stanley is equal-weight on the stock with target at Rs 560 per share.
Tata CommunicationMorgan Stanley is overweight on the stock with target at Rs 690 per share as one-offs lead to EBITDA disappointment. It sees 5 percent downside risk to FY17 EBITDA.
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