Vodafone Idea and Bharti Airtel reported record Q2 losses for the September quarter. Despite weak results, UBS maintained a 'buy' rating on the stock, while Credit Suisse raised its target price. Among other brokerages, Credit Suisse downgraded Varroc Engineering, while Nomura was bullish on PNC Infra. Here are the top brokerage calls for Friday:
UBS on Bharti Airtel: The brokerage maintained 'buy' call on the stock with a target at Rs 415 per share. Excluding one-offs, the company reported a net loss of Rs 1,100 crore. The brokerage maintained a "buy" as the company accelerated investments in 4G.
Credit Suisse on Bharti Airtel: The brokerage maintained a 'neutral' rating on the stock but raised its target to Rs 380 per share from Rs 370 earlier. Regulatory headwinds to remain an overhang in the near term, said the brokerage. Factoring Q2 results, the brokerage changed FY20EPS estimate To Rs 58 From Rs 14.
Credit Suisse on Varroc Engineering: The brokerage downgraded the stock to 'neutral' from 'outperform' and cut its target price to Rs 490 per share from Rs 600 earlier. North America revenue drop concerning for Mexico facility, said the brokerage. it added that facilities in the ramp-up phase to limit margins.
Citi on Varroc Engineering: The brokerage had a 'buy' call on the stock but cut its target to Rs 630 per share from Rs 750 earlier. The ramp-up in the new plants should aid revenue growth going forward, said the brokerage.
Morgan Stanley on Insurance: Insurance stocks have re-rated sharply, helped by strong value of new business (VNB) growth, said the brokerage. It expects VNB growth to be strong at 20-30 percent over the next couple of years. It prefers SBI Life for better growth prospects.
Credit Suisse on Union Bank: The brokerage maintained a 'neutral' call on the stock but cut its target to Rs 56 from Rs 75 earlier. Q2 was another weak quarter for the lender, said the brokerage, adding that book value continues to erode. With merger overhang, growth is likely to remain muted, it noted.
Nomura on PNC Infra: The brokerage maintained 'buy' call on the stock with a target at Rs 267 per share. Results above estimates at all levels noted the brokerage. It added that revenue beat signifies robust execution even in the monsoon quarter.