Brokerage: IDFC Sec | Rating: Initiates coverage with outperform | Rating: Rs 310
IDFC Securities said that the company is back on the growth path after a subdued FY17. It sees EBITDA CAGR of 21 percent over FY17-20. It also said that the stock was pricing in grade slippage and fear of low volume off-take. Going forward, it expects FSA coal prices to rise in the second half of this fiscal due to improving demand.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Hiked to Rs 720
The global research firm said that the market share gains for Titan will continue going forward.
Brokerage: Nomura | Rating: Buy | Target: Rs 3,281
Nomura said that new launches and cost savings are key drivers of earnings growth for the company.
Brokerage: Nomura | Target: Raised to Rs 600 from Rs 419
Nomura said that GAIL’s unified tariff is a major reform, while the transmission segment will get re-rated. It also observed that earnings outlook got even brighter.
Brokerage: Deutsche Bank | Rating: Sell | Target: Rs 340
The brokerage house said that it has already factored in 20% tariff increase. It also observed that tariff approved by petroleum and natural gas regulator will be lower than GAIL.
Brokerage: CLSA | Rating: Sell
The global brokerage firm said that the RCom-Aircel deal being called off is a setback for the company’s deleveraging plans. But it is pursuing its tower sale deal to Brookfield, but valuation is under review. Further, rise of further market share loss is high with respect to the mobile operations.
Brokerage: Jefferies | Rating: Buy | Target: Rs 200
Jefferies believes that gas prices should rise 10-15 percent in a year, while higher output could drive natural gas EBITDA by 39 percent over FY17-21. A gradual rise in oil prices will underpin the buy rating.
Brokerage: Bank of America Merrill Lynch | Rating: Increased to Rs 500
The global research firm said that the USD 25 billion market capitalization is likely by FY20.
Market Strategy
Brokerage: Kotak Sec
The broking firm said that earnings revival become critical for rich market valuation to sustain, but long-term India story remains intact. Further, it said that given liquidity and disruptions, one could focus on bottom-up approach.
OMCs
Brokerage: Morgan Stanley | Rating: Underperform
The research firm said that investors are concerned with oil price rise hurting margins. It also said that recent high-frequency data suggests softness, but trend could reverse. It prefers IOC and BPCL over HPCL.
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