Broker Radar for March 08

Check out the stock commentaries and recommendations from brokerage houses.

Mar 08, 2019 08:03 IST India Infoline News Service

Macquarie initiated ‘Outperform’ on Gujarat Gas with a TP of Rs165.
  • See highest structural volume growth potential versus IGL and MGL.
  • Base case assumes volumes registering 13% CAGR over the next five years.
  • The shift in sales and sourcing mix to lower volatility.
UBS initiated ‘Neutral’ on Mindtree with a TP Rs1,015.
  • Strong digital growth balanced by client concentration.
  • Healthy digital exposure and room for operating margin reversal are positives.
  • Stake sale likely to be a big influence on valuations in 2019.
Nomura maintained on Alkem Labs ‘Neutral’ and cut price target to Rs1,965 from Rs2,116.
  • Cut earnings to factor impact of competition in Mycophenolate Mofetil suspension.
  • VistaPharm recently received approval and is likely to launch a product.
  • Trading at 13.7 times FY21F EV/EBITDA, higher than a trading multiple of most peers.
CLSA maintained ‘Outperform’ on Ambuja Cements with a TP of Rs250.
  • The annual report shows the balance sheet parameters worsened.
  • Operating cash flow and FCF declined sharply in 2018. Market share losses continued but new capacity should help.
Goldman Sachs downgraded to ‘Sell’ from ‘Neutral’ on HCL Tech and cut price target to Rs907 from Rs958.
  • An increasing risk from execution and industry shift to the cloud.
  • See the risk of lower margins in the near term and challenges with software products.
CLSA maintained ‘Sell’ on Hindalco, cut TP to Rs180 from Rs195.
  • Easing aluminum cost support and slowing global autos pose headwinds.
  • Concerned on the outlook for Novelis given slowing global auto demand.
Goldman Sachs on TCS  upgrade to ‘Buy’ from ‘Neutral’, raised TP to Rs2,359 from Rs1,856.
  • Raising dollar revenue growth forecast in FY18-21 to 10.3% vs. 8.9% previously.
  • Expect TCS to outperform Infosys in terms of EPS growth and ROE/ROIC. Domain expertise to help clients digitize.
Source: Media Reports

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