Here’s how brokerages rate specific stocks
Goldman Sachs on Eicher Motors:
Launch of 2 new motorcycles a key catalyst for the stock.
Big leap forward in terms of engineering, quality and design capability.
May see an increase in revenue share from accessories and parts.
Reiterates BUY call on the stock, target 37,358/share.
Macquarie on Hindustan Zinc:
Lowered Zinc, Lead and Silver prices for FY19–21
Lower commodity prices is driving 8–12 percent cuts to our FY19–21 EPS
Premium valuation difficult to justify with inconsistent dividend payout.
Downgrade to UNDERPERFORM, target cut to Rs 253 from Rs 273/share.
Macquarie on Nalco:
Upgraded alumina prices by 25-37 percent for FY19-20
Higher alumina, ali and weaker leads to +25-41 percent EPS for FY19-21.
The company is the best play on alumina.
Maintains OUTPERFORM call, target raised to Rs 87 from Rs 82/share.
Citi on Reliance Industries:
Earnings outlook stable near-term, mixed in the medium term.
BUY call, target at Rs 1,300/share.
Earnings upgrades revived after a period of consolidation.
Citi on L&T Finance:
BUY call, target price at Rs 225/share.
Expect cost of equity at 13.3 percent and RoE of 20.5 percent.
Recent trends have been healthy for the rural segment.
Execution on growth and asset quality for rural portfolio will be key.
Nomura on Cummins:
Maintains BUY call, target at Rs 890/share.
Company has defended the downcycle well, time for an upcycle.
Stock correction provides buying opportunity.
Build in an 11.2 percent adjusted revenue CAGR over FY18-21.
Axis Capital on Yes Bank:
Maintains BUY call, target cut to Rs 300 from Rs 430/share.
Believe the ride will not be smooth as Kapoor was a key catalyst.
Kapoor’s absence may impact in terms of the continuity of strategies and outlook.
Key fear hovers around some kitchen sinking activity or holes in the B/S.
Valuations seem reasonable.