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Top brokerage calls for August 21: Jefferies retains 'underperform' on PFC, REC; HSBC bullish on SBI

Updated : 2019-08-21 08:28:34

Indian shares are expected to open flat on Wednesday amid selloffs in global markets over concerns of US-China trade war and in absence of any government actions on the economy. Among brokerages, Jefferies retains 'underperform' rating on PFC and REC while HSBC is bullish on SBI. Here are the top brokerage calls for Wednesday:

<strong>Jefferies on Power Finance Companies:</strong> The brokerage retains 'underperform' on both PFC and REC. It expects a return on equity to be range-bound between 15-16 percent for REC and 13-14 percent for PFC. New policy initiatives are negative for long-term NIMs, it adds.
Jefferies on Power Finance Companies: The brokerage retains 'underperform' on both PFC and REC. It expects a return on equity to be range-bound between 15-16 percent for REC and 13-14 percent for PFC. New policy initiatives are negative for long-term NIMs, it adds.
<strong>HSBC on SBI:</strong> The brokerage maintains 'buy' call on the stock with a target at Rs 400 per share. Improving performance amid subdued external climate has led to a hesitant rerating, the brokerage said, adding that the scale-up of subsidiaries and lower capital consumption mark are structural positive shifts.
HSBC on SBI: The brokerage maintains 'buy' call on the stock with a target at Rs 400 per share. Improving performance amid subdued external climate has led to a hesitant rerating, the brokerage said, adding that the scale-up of subsidiaries and lower capital consumption mark are structural positive shifts.
<strong>Citi on NMDC</strong>: The brokerage has a 'buy' rating on the stock with a target at Rs 120 per share. If the company loses the Donimalai lease, the immediate impact would be on volumes, Citi said.
Citi on NMDC: The brokerage has a 'buy' rating on the stock with a target at Rs 120 per share. If the company loses the Donimalai lease, the immediate impact would be on volumes, Citi said.
<strong>Morgan Stanley on Adani Ports:</strong> The brokerage is overweight on the stock with a target at Rs 408 per share. In its base-case scenario, the brokerage expects a 20 percent earnings CAGR for FY19-21. It also adds that the company is looking to buy a 72 percent stake in Krishnapatnam Port, as per reports.
Morgan Stanley on Adani Ports: The brokerage is overweight on the stock with a target at Rs 408 per share. In its base-case scenario, the brokerage expects a 20 percent earnings CAGR for FY19-21. It also adds that the company is looking to buy a 72 percent stake in Krishnapatnam Port, as per reports.
<strong>Morgan Stanley on NTPC:</strong> The brokerage has an 'equal weight' call on the stock with a target at Rs 147 per share. Faster-than-expected capacity additions and strong demand are upside risks while sluggish demand and value-dilutive acquisitions are downside risks.
Morgan Stanley on NTPC: The brokerage has an 'equal weight' call on the stock with a target at Rs 147 per share. Faster-than-expected capacity additions and strong demand are upside risks while sluggish demand and value-dilutive acquisitions are downside risks.
<strong>Credit Suisse India Strategy:</strong> The brokerage said that consensus Nifty FY20 EPS growth fell to 25 percent from 31 percent. It also added that given the weak economic momentum, there are downside risks estimates.
Credit Suisse India Strategy: The brokerage said that consensus Nifty FY20 EPS growth fell to 25 percent from 31 percent. It also added that given the weak economic momentum, there are downside risks estimates.
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