Citi believes the recurrence of IndiGo's engine issues does not augur well from a positioning perspective. Among other brokerages, Macquarie maintained 'outperform' on Maruti Suzuki and Morgan Stanley maintained an 'overweight' call on Petronet LNG. Here are the top brokerage calls for Wednesday:
CLSA on BHEL: The brokerage upgraded BHEL to 'buy' from 'sell' with a target price at Rs 67 per share. CLSA said that the company could gain a lot from a strategic sale.
Citi Research on IndiGo: The brokerage maintained a 'neutral' call on the stock with the target price at Rs 1,700. It said that the company has a fleet of 245 planes out of which 89 are A320 neos. The grounding of airplanes is not a big concern if remaining planes can be better utilized, it added. IndiGo on Tuesday placed an order for 300 Airbus A320neo family aircraft, comprising of a mix of A320neo, A321neo and A321XLR planes.
Morgan Stanley on India equity strategy: Morgan Stanley said that Q2 earnings so far have delivered comfortable double-digit net profit growth for most companies. Estimate beating earnings growth was most pronounced in consumer discretionary, non-banking finance companies (NBFCs), and materials firms, it added.
Macquarie on Maruti Suzuki: Macquarie maintained an' outperform' rating on the stock with the target price at Rs 8,150. Maruti, which plans to phase out diesel engines by March 2020, expects the demand to shift from diesel to petrol and CNG post-BS-VI transition, the brokerage added.
Morgan Stanley on Petronet LNG: The brokerage maintained an 'overweight' rating on the stock with a target price at Rs 341. Morgan Stanley said that the estimate-beating earnings before interest, tax, depreciation and amortization (Ebitda) numbers came on the back of the faster ramp-up of Dahej terminal. It also said that normalized earnings at Rs 720 crore, was 26 percent above its estimate.