Brokerage: Morgan Stanley | Rating: Underweight | Target: Rs 48
The global research firm believes that the share price will fall relative to the country index over the next 60 days. It highlighted that the stock has traded up recently, making the short term valuation less compelling. It continues to believe that the balance sheet will remain stretched.
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 2,850
The global financial services firm said that any progress on regulatory changes is a key monitorable for the company’s investment thesis.
Brokerage: Bank of America Merrill Lynch (BofA-ML) | Rating: Neutral | Target: Rs 1,450
The research firm highlighted that the implied interest costs have increased sharply, possible on Jio using more rupee debt. Further, BofA-ML updated its model to adjust for the company’s FY17 annual report. It also said that the lowered oil forecasts lead to FY18/19 earnings per share (EPS) cut of 11-13 percent.
Brokerage: CLSA | Rating: Buy | Target: Rs 1,710
The brokerage said that the company’s annual report indicated an encouraging response to its Prime plan. With services having improved since then, the acceptability should rise further, it added.
CLSA estimated FY19 full costs of Rs 209 billion and expects Rs 30 billion as the continued capitalisation for non-wireless. It also highlighted that the report showed 30 percent rise in the operating cash flow for Reliance.
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Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 1,472
The firm believes that an assumption of price erosion at 75-80 percent, the company may generate sales of USD 10-15 million in the next 12 months. It is overweight given the pick up in new nods and launches in the US in FY18.
Brokerage: JPMorgan | Rating: Overweight | Target: Rs 455
JPMorgan stated that the company had reported 20 percent increase in Q1 pre-sales, driven by higher ASPs. The Gurugram market showed positive trend, while volume has doubled off on a lower base, the report added. Further, Q1 data points suggest that traction in higher end apartments was returning. It expects market normalisation to happen by the end of 2017
Brokerage: Nomura | Rating: Buy | Target: Rs 180
Nomura said that the incremental risk reward was favourable after 24 percent correction in two months. Further, it said that asset quality risks were largely discounted while pre-provisioning operating profit (PPOP) remains a pain point. It revised downwards its FY18 profit forecast by 56 percent, while FY19 forecast was unchanged. Zee Ent
Brokerage: Goldman Sachs | Rating: Neutral | Target: Rs 458
Goldman Sachs said that it increased FY18-20 EPS estimates by 1 to 3 percent. It forecasts a marginally higher revenue growth in FY18, while it could be slightly lower revenue in FY19/20.
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