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    Top brokerage calls for April 26: Credit Suisse maintains 'outperform' on Axis Bank, CLSA bullish on Maruti Suzuki

    Top brokerage calls for April 26: Credit Suisse maintains 'outperform' on Axis Bank, CLSA bullish on Maruti Suzuki

    Top brokerage calls for April 26: Credit Suisse maintains 'outperform' on Axis Bank, CLSA bullish on Maruti Suzuki
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    By CNBC-TV18  IST (Published)

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    Among brokerages, CLSA and Morgan Stanley were bullish on Maruti Suzuki post Q4 numbers, however, Morgan Stanley cut the stock's target price. Credit Suisse maintained 'outperform' on Axis Bank and raised its target to Rs 850. Jefferies was positive on SBI Life.

    Indian benchmark indices are likely to open on a flat note on Friday, tracking subdued Asian peers, as investors remain cautious amid Q4 earnings season. In the previous session, the market reversed more than half of gains in late sell-off and closed April F&O expiry session sharply lower amid an increase in crude oil prices. The BSE Sensex fell 323.82 points to close at 38,730.86 while the Nifty50 slipped 84.40 points to 11,641.80
    Among brokerages, CLSA and Morgan Stanley were bullish on Maruti Suzuki post Q4 numbers, however, Morgan Stanley cut the stock's target price. Credit Suisse maintained "outperform" on Axis Bank and raised its target to Rs 850. Jefferies was positive on SBI Life.
    Here are top brokerage calls for today:
    CLSA on Maruti
    - "Buy" rating, Target at Rs 8,000 per share
    - Demand weak but franchise strong and valuations finding support
    - Margin up 70 bps QoQ, led by lower discounts
    - Demand is weak and we don’t expect a big recovery in FY20
    - Competition in passenger vehicles remains benign
    - Margin to improve in the coming quarter as the benefit of lower commodity flow through
    - Cut FY20 EPS estimate by 3 percent on lower margin
    Morgan Stanley on Maruti
    - "Overweight" call, target cut to Rs 8,149 from Rs 8,188 per share
    - Margin at cyclical low and may rebound sharply as volumes turn in H2FY20
    - Expect FY20 margin of 9.3 percent, flat YoY, margin to expand in FY21
    - Trim FY20 EPS estimates, but maintains estimates for FY21
    Morgan Stanley on Tata Steel
    - Standalone EBITDA miss reflects weaker realisation
    - Standalone EBITDA miss offset by strong core performance in Europe
    - Europe performance drives broadly in-line consolidated EBITDA
    - Net debt reduced by Rs 6,200 crore sequentially and this remains a focus
    - Domestic expansion and EU restructuring on track
    - Thyssen JV, once executed, will lead to debt reduction of 2.5 billion euro
    Credit Suisse on Axis Bank
    - Maintain "outperform", target raised to Rs 850 from Rs 780 per share
    - Asset quality trends improve further; operating performance stable
    - Reported healthy Q4 results, owing to healthy loan growth of 13 percent YoY
    - Asset quality continued to improve, with net NPAs declining to 2 percent
    - Slippages moderated across segments; credit costs dropped to 1.5 percent
    - Cut FY20 EPS estimates by 3 percent due to one-off provisions
    - Return on equity should pick up to 16 percent by FY21
    Jefferies on SBI Life
    - "Buy" rating, target raised to Rs 745 from Rs 728 per share
    - Distribution muscle key competitive advantage
    - Retail business franchise is geographically the most well diversified
    - It leads to greater immunity from capital market downturns
    - Factor in stronger business growth and higher protection mix
     
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