• SENSEX
    NIFTY 50
Market

Top brokerage calls for October 16: Jefferies, Nomura bearish on Wipro post Q2; HSBC upgrades ACC

Updated : 2019-10-16 08:39:01

IT services major Wipro reported its Q2 earnings post-market hours on Tuesday, beating street estimates. It reported a 35 percent year-on-year (YoY) rise in consolidated net profit at Rs 2,552.7 crore in Q2 against Rs 1,889 crore in the year-ago quarter. Post the earnings brokerages remain cautious on the stock. Jefferies has an 'underperform' rating on the stock and reduced its target price, while Nomura maintains a 'reduce' call. Among other stocks, HSBC upgraded ACC, while Morgan Stanley is 'overweight' on MCX. Here are the top brokerage calls for Wednesday:

 Jefferies on Wipro:  The brokerage has an 'underperform' rating on the stock but cut its target to Rs 218 per share from Rs 230 earlier. Margins beat estimates and Q3 guidance is better but growth underperformance continued in Q2, said the brokerage, adding that it expects the company to continue underperforming on growth relative to top-tier peers.
Jefferies on Wipro: The brokerage has an 'underperform' rating on the stock but cut its target to Rs 218 per share from Rs 230 earlier. Margins beat estimates and Q3 guidance is better but growth underperformance continued in Q2, said the brokerage, adding that it expects the company to continue underperforming on growth relative to top-tier peers.
 Nomura on Wipro:  The brokerage maintains a 'reduce' call on the stock with a target at Rs 235 per share. Outlook on BFSI/retail remains weak and improvement in healthcare and manufacturing seems some time away, said the brokerage. It also expects Wipro's growth to continue to lag peers.
Nomura on Wipro: The brokerage maintains a 'reduce' call on the stock with a target at Rs 235 per share. Outlook on BFSI/retail remains weak and improvement in healthcare and manufacturing seems some time away, said the brokerage. It also expects Wipro's growth to continue to lag peers.
 Morgan Stanley on Wipro:  The brokerage is 'underweight' on the stock but cut its target to Rs 230 per share from Rs 240 earlier. Organic revenue growth guidance of 0.5-2.5 percent for Q3 is softer than the brokerage's expectations. It also reduced its FY20-22 revenue estimates by 2-5 percent to reflect weak revenue growth.
Morgan Stanley on Wipro: The brokerage is 'underweight' on the stock but cut its target to Rs 230 per share from Rs 240 earlier. Organic revenue growth guidance of 0.5-2.5 percent for Q3 is softer than the brokerage's expectations. It also reduced its FY20-22 revenue estimates by 2-5 percent to reflect weak revenue growth.
 HSBC on ACC:  The brokerage upgraded the stock to 'buy' from 'hold' and raised its target price to Rs 1,690 per share from Rs 1,660 earlier. The company's Q3 results was ahead of estimates, driven by lower-than-expected costs, said the brokerage. However, it added that the volumes have contracted for the second successive quarter.
HSBC on ACC: The brokerage upgraded the stock to 'buy' from 'hold' and raised its target price to Rs 1,690 per share from Rs 1,660 earlier. The company's Q3 results was ahead of estimates, driven by lower-than-expected costs, said the brokerage. However, it added that the volumes have contracted for the second successive quarter.
 CLSA on ACC:  The brokerage maintains a 'buy' rating on the stock with a target at Rs 2,050 per share. The impact of tough macro conditions is evident from a slight volume decline, said the brokerage. It also raised the company's EPS estimates by 3-4 percent.
CLSA on ACC: The brokerage maintains a 'buy' rating on the stock with a target at Rs 2,050 per share. The impact of tough macro conditions is evident from a slight volume decline, said the brokerage. It also raised the company's EPS estimates by 3-4 percent.
 Citi on ACC:  The brokerage has a 'buy' rating on the stock but cut its target price to Rs 2,150 per share from Rs 2,175 earlier. The brokerage expects demand improving after Diwali. It also said that Emami Cement’s acquisition by a large player should help consolidate the east market.
Citi on ACC: The brokerage has a 'buy' rating on the stock but cut its target price to Rs 2,150 per share from Rs 2,175 earlier. The brokerage expects demand improving after Diwali. It also said that Emami Cement’s acquisition by a large player should help consolidate the east market.
 Morgan Stanley on MCX:  The brokerage is 'overweight' on the stock and raised its target to Rs 1,365 per share from Rs 1,260 earlier on higher fee realisation and lower operating costs. It expects the stock price to double in three years.
Morgan Stanley on MCX: The brokerage is 'overweight' on the stock and raised its target to Rs 1,365 per share from Rs 1,260 earlier on higher fee realisation and lower operating costs. It expects the stock price to double in three years.
Live TV