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Last Updated : Jun 05, 2020 11:56 AM IST | Source: Moneycontrol.com

Slideshow | Foreign brokerages raise target on these 8 stocks; take a look

Here are the eight stocks in which foreign brokerages raised the target price

On June 4 in a volatile trade, Indices broke the six day winning momentum and ended lower in the with Nifty able to hold above 10,000 mark. Here are the seven stocks in which foreign brokerages raised the target price:

Indian market indices broke their six-day winning momentum on June 4 and ended lower with Nifty just about managing to hold the 10,000 mark. Given the current backdrop of economic slowdown due to COVID-19 spread, and the uncertainty in the market, foreign brokerages raised their target prices on eight stocks, as reported by CNBC-TV18. Take a look:

Voltas | Brokerage: Jefferies | Rating: Buy | Target: Raise to Rs 625 from Rs 615 per share. The company’s Q4 profit was 10% below expectations as engineering business saw 18% revenue decline. Jefferies reduced FY21 EPS sharply to account for incremental 3-6 weeks lockdown and cut FY22 EPS marginally by 5%. It believes that strong balance sheet & management will lead to strong valuations.

Voltas | Brokerage: Jefferies | Rating: Buy | Target: Raise to Rs 625 from Rs 615 per share. The company’s Q4 profit was 10% below expectations as engineering business saw 18% revenue decline. Jefferies reduced FY21 EPS sharply to account for incremental 3-6 weeks lockdown and cut FY22 EPS marginally by 5%. It believes that strong balance sheet & management will lead to strong valuations.

Lupin | Brokerage: Credit Suisse | Rating: Downgrade to neutral from outperform | Target: Raised to Rs 820 from Rs 690 per share. The market is ignoring increasing competition in Levothyroxine and overestimating peak sales of Albuterol Inhaler. Levothyroxine & Albuterol account for 30% of FY22 profit estimate. Credit Suisse raised FY21/FY22 EPS estimates by 20%/20% due to lower Solosec spend & tax guidance.

Lupin | Brokerage: Credit Suisse | Rating: Downgrade to neutral from outperform | Target: Raised to Rs 820 from Rs 690 per share. The market is ignoring increasing competition in Levothyroxine and overestimating peak sales of Albuterol Inhaler. Levothyroxine & Albuterol account for 30% of FY22 profit estimate. Credit Suisse raised FY21/FY22 EPS estimates by 20%/20% due to lower Solosec spend & tax guidance.

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Bharti Infratel | Brokerage: CLSA | Rating: Buy | Target: Raise to Rs 265 from Rs 207 per share. The Infratel’s merger with Indus Tower is likely to close in the coming months, while merger operational-expense synergies could boost EBITDA & EPS by 3-8%.

Motherson Sumi | Brokerage: Jefferies | Rating: Hold | Target: Raised to Rs 105 from Rs 75 per share. The company posted good operating performance in Q4, while EBITDA was ahead of estimates led by healthy performance of subsidiaries. The company expects a tougher Q2 due to production shutdowns globally, while Jefferies raises FY21-23 EPS estimates by 9-14%, but still 25-29% below street.

Motherson Sumi | Brokerage: Jefferies | Rating: Hold | Target: Raised to Rs 105 from Rs 75 per share. The company posted good operating performance in Q4, while EBITDA was ahead of estimates led by healthy performance of subsidiaries. The company expects a tougher Q2 due to production shutdowns globally, while Jefferies raises FY21-23 EPS estimates by 9-14%, but still 25-29% below street.

Britannia Industries | Brokerage: CLSA | Rating: Downgrade to outperform from buy | Target: Raised to Rs 3,900 from Rs 3,700 per share. According to CLSA, the earnings momentum is likely to sustain, while valuations offer limited room for upside. The quick response to supply chain issues enhanced demand opportunity in Q1FY21, while expect demand to normalise to high single digits for the rest of the year. CLSA do not see material benefit of an expected health & hygiene trend and it revised its earnings estimates up by 2-5% over FY20-22.

Britannia Industries | Brokerage: CLSA | Rating: Downgrade to outperform from buy | Target: Raised to Rs 3,900 from Rs 3,700 per share. According to CLSA, the earnings momentum is likely to sustain, while valuations offer limited room for upside. The quick response to supply chain issues enhanced demand opportunity in Q1FY21, while expect demand to normalise to high single digits for the rest of the year. CLSA do not see material benefit of an expected health & hygiene trend and it revised its earnings estimates up by 2-5% over FY20-22.

HDFC | Brokerage: Jefferies | Rating: Buy | Target: Raised to Rs 2,110 from Rs 2,000 per share. The steady exit from lockdown should support the business of lenders, while concerns about cash flows & asset quality remain for the non-bank lenders, said Jefferies. The portfolio acquisitions can lend upside to earnings & support the re-rating. However, the stock remains one of our top sector picks, it added.

HDFC | Brokerage: Jefferies | Rating: Buy | Target: Raised to Rs 2,110 from Rs 2,000 per share. The steady exit from lockdown should support the business of lenders, while concerns about cash flows & asset quality remain for the non-bank lenders, said Jefferies. The portfolio acquisitions can lend upside to earnings & support the re-rating. However, the stock remains one of our top sector picks, it added.

JSPL | Brokerage: Edelweiss Securities | Rating: Buy | Target: Raised to Rs 155 from Rs 135 per share. The company reported healthy volume in May & even operating performance ahead of the peers. Broking house raises FY21/FY22 volume estimates by 6%/3% to 6.05 mt/6.6 mt.

JSPL | Brokerage: Edelweiss Securities | Rating: Buy | Target: Raised to Rs 155 from Rs 135 per share. The company reported healthy volume in May & even operating performance ahead of the peers. Broking house raises FY21/FY22 volume estimates by 6%/3% to 6.05 mt/6.6 mt.

Aurobindo Pharma | Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 920 from Rs 790. The company posted strong all-around performance as the results were well ahead of our estimates. The volume share gains in US & stocking benefit in EU drove the margin. The company is aiming to be debt free by FY22 end. The new launch momentum in US & EU should remain strong. CLSA increased FY21-22 EPS estimates by 8%-10%.

Aurobindo Pharma | Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 920 from Rs 790. The company posted strong all-around performance as the results were well ahead of our estimates. The volume share gains in US & stocking benefit in EU drove the margin. The company is aiming to be debt free by FY22 end. The new launch momentum in US & EU should remain strong. CLSA increased FY21-22 EPS estimates by 8%-10%.

First Published on Jun 5, 2020 11:29 am
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