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Top brokerage calls for October 17: Citi maintains 'sell' on Bajaj Auto, cuts TP for Federal Bank

Updated : October 17, 2019 08:18 AM IST

Indian shares are expected to open little changed on Thursday following muted trends in global markets and amid caution over the ongoing Q2 earnings season. Among brokerage, Morgan Stanley and Citi cut price targets for Federal Bank post Q2 earnings, while HSBC was bullish on Info Edge and raised its target price. Here are the top brokerage calls for Thursday:

 Morgan Stanley on Federal Bank:  The brokerage was 'underweight' on the stock and cut its target price to Rs 80 per share from Rs 90 earlier. According to the brokerage, earnings would be under pressure and it lowered its estimates further by 3-6 percent for FY20-22. It also added that asset quality was weak given high NBFC/HFC exposure.
Morgan Stanley on Federal Bank: The brokerage was 'underweight' on the stock and cut its target price to Rs 80 per share from Rs 90 earlier. According to the brokerage, earnings would be under pressure and it lowered its estimates further by 3-6 percent for FY20-22. It also added that asset quality was weak given high NBFC/HFC exposure.
 Citi on Federal Bank : The brokerage gave a 'buy' call on the stock but cut its target to Rs 105 per share from Rs 120 earlier. Slower corporate loan growth and margin contraction dragged NII, said the brokerage, adding that slippages rose but were within the watchlist. Management reiterated provision guidance and expects NIM to improve, it noted.
Citi on Federal Bank: The brokerage gave a 'buy' call on the stock but cut its target to Rs 105 per share from Rs 120 earlier. Slower corporate loan growth and margin contraction dragged NII, said the brokerage, adding that slippages rose but were within the watchlist. Management reiterated provision guidance and expects NIM to improve, it noted.
 Citi on Bajaj Auto:  The brokerage gave a 'sell' call on the stock with a target at Rs 2,100 per share. Bajaj’s brand image, dealer network and superior quality could give it an edge, said the brokerage, adding that unveiling of Chetak could push competitors to launch electric two-wheelers sooner than planned.
Citi on Bajaj Auto: The brokerage gave a 'sell' call on the stock with a target at Rs 2,100 per share. Bajaj’s brand image, dealer network and superior quality could give it an edge, said the brokerage, adding that unveiling of Chetak could push competitors to launch electric two-wheelers sooner than planned.
 Citi on MindTree:  The brokerage was 'neutral' on the stock but raised its target price to Rs 765 from Rs 760 earlier. The company reported a decent Q2 with revenue growth ahead while margin lower than expectation said the brokerage. It added that top client growth at 5 percent QoQ is likely to provide some comfort post-management change.
Citi on MindTree: The brokerage was 'neutral' on the stock but raised its target price to Rs 765 from Rs 760 earlier. The company reported a decent Q2 with revenue growth ahead while margin lower than expectation said the brokerage. It added that top client growth at 5 percent QoQ is likely to provide some comfort post-management change.
 CLSA on DB Corp:  The brokerage gave a 'buy' rating on the stock but cut its target to Rs 185 per share from Rs 220 earlier. Q2 revenue disappointed but tax boosted earnings, it said, adding that it was positive on the stock as it offers a 7 percent dividend yield.
CLSA on DB Corp: The brokerage gave a 'buy' rating on the stock but cut its target to Rs 185 per share from Rs 220 earlier. Q2 revenue disappointed but tax boosted earnings, it said, adding that it was positive on the stock as it offers a 7 percent dividend yield.
 Morgan Stanley on PNB Housing:  The brokerage was 'underweight' on the stock with a target price at Rs 550 per share. Reported AUM at Rs 89,500 crore YoY growth slowing to 22 percent from 29 percent, said the brokerage. It added that gross NPA stable QoQ at 0.84 percent versus 0.85 percent.
Morgan Stanley on PNB Housing: The brokerage was 'underweight' on the stock with a target price at Rs 550 per share. Reported AUM at Rs 89,500 crore YoY growth slowing to 22 percent from 29 percent, said the brokerage. It added that gross NPA stable QoQ at 0.84 percent versus 0.85 percent.
Published : October 17, 2019 08:18 AM IST
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