Brokerage: CLSA | Rating: Buy | Target: Rs 560
The global research firm said that ICICI Pru was among its top picks in the financials space. Further, it said that the firm was focusing on growth with better profitability and said that India offered strong macro growth drivers for life insurance. Going forward, it sees healthy growth premiums and a cut in dividend payout will improve EV growth.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 565
Morgan Stanley said that IASI divestment transaction has no implications on the company’s existing relationship with UTC. Further, it added that the company’s exit signals risk to its estimates, but is not material to overall earnings.
Brokerage: BofAML | Rating: Neutral | Target:
Bank of America Merrill Lynch said that domestic presents growth opportunity on current base with rural electrification. It also said that the company expects MEP margins to trend up to 7%; may take 3-5 years in their view.
Brokerage: UBS | Rating: Buy | Target: Rs 660
With legacy projects behind, the management expects 5-6% EBIT in the near term. It further said that the stock was trading near its peak multiple which may sustain.
Brokerage: UBS | Rating: Sell | Target: Rs 73
The brokerage house said that Mumbai-Ahmedabad bullet train opportunity is too small and too far. The contract implies Rs 10-11 billion annual revenue — 3% of FY18 revenue estimates.
Brokerage: HSBC | Rating: Reduce | Target: Rs 77
HSBC said that the company’s standalone tower assets sale could be at a discount. While leverage remains a concern, it sees net debt/EBITDA for 2018 at 6.4 times. It also said that benefits of synergy from merger with Vodafone is a key medium-term catalyst for the firm.
Brokerage: Jefferies | Rating: Hold | Target: Rs 200
Jefferies said that the company’s weak bid pipeline points to medium-term risk and believes that the company is a gradual re-rating case.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 790
Minority shareholders will benefit if VSNL land is demerged, the report added. Further, the land parcel is valued at Rs 189 per share and the target will be hiked to Rs 1,071 if the land demerger goes through.
The global research firm said that the sector’s FY18 dollar revenue growth may be same or below FY17. It likes Hexaware and L&T infotech from midcap space.