Broker Radar for January 11

Check out the stock commentaries and recommendations from foreign brokerage houses.

Jan 11, 2019 02:01 IST India Infoline News Service

Buy Hold And Sell Dice Represents Stocks Strategy
CLSA Maintained ‘Buy’ On TCS; cut TP to Rs2,460 from Rs2,500.
  • Margin miss driven by apposite trade-off in a red-hot talent market.
  • Cut margin estimates by 60-70 basis points to reflect growth-margin trade-off.
  • Expect TCS to fully exploit strong demand and gain share from its unique position.
Macquarie Maintained ‘Outperform’ on TCS; cut TP to Rs2,291 from Rs2,345.
  • Results a mixed bag, with revenue meeting estimates but missing margins by 100 basis points.
  • Lowering our FY19–21 EBIT margin estimates 30–50 basis points.
  • Expect double digit growth in FY20 on strong growth in order book and positive commentary.
Morgan Stanley Maintained ‘Overweight’ on TCS with a price target of Rs2,260.
  • Q3: small beat on revenues more than offset by miss on margins.
  • See downside risks to margin expectations given dismal performance in Q3.
  • Margin levers will take time and could face headwinds in interim.
Macquarie Downgraded Bandhan Bank to ‘Underperform’ from ‘Neutral’; cut TP to Rs400 from Rs560.
  • Introduce 20% capital allocation discount to target multiple due to overhang.
  • Post Gruh acquisition, risk of another expensive or ill-conceived merger an overhang.
  • Expect the stock to underperform despite strong fundamentals.
UBS Upgraded IGL to ‘Neutral’ from ‘Sell’; hiked price target to Rs300 from Rs235.
  • Upgrade on strong volume growth outlook and improving margins.
  • Expect 11% volume growth in FY18-21 due to expansion in adjacent areas.
  • With increase in gas costs passed through, margins could recover from the second half of the current financial year.
UBS Downgraded GAIL to ‘Sell’ from ‘Buy’; cut TP to Rs335 from Rs460.
  • Earnings peaked; see downside risk from oil fall and the U.S. LNG concerns.
  • Risk of losses from contracted U.S. LNG to re-emerge if Brent remains lower.
  • Transmission business is benefiting from tariff hikes; volume growth to follow.
Morgan Stanley maintained ‘Equal-weight’ on Marico with a price target of Rs320.
  • Copra prices for December risen 10 percent (MoM); see near term implication on Marico.
  • If current copra prices sustain, 2019 prices will lower versus 2018.
(As per media reports)

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