Brokerage firm Bernstein maintained an outperform rating on HDFC Bank, Nomura maintained a buy rating on Apollo Hospitals, InCred downgraded LTIMindtree and Goldman Sachs maintained a neutral rating on Asian Paints.
We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Bernstein on HDFC Bank: Outperform| Target Rs 2,200
Bernstein maintained an outperform rating on HDFC Bank with a target price of Rs 2,200 but highlighted the top 3 concerns behind the $13 billion rout.
HDFC Bank shares slumped more than 8% on Wednesday – its biggest single-day drop since March 2020 – as concerns over the bank’s future profitability triggered a sharp sell-off.
Also Read – HDFC Bank down on margin worries
The biggest concern is on the drivers for the net interest margin (NIM) surprise and the lack of a clear pathway to normalization.
A continued weak deposit growth could limit loan growth and/or eat into margins.
Improvement in operating metrics of the bank now appears to be more dependent on the operating environment rather than an automatic even if a gradual improvement story.
Nomura on Apollo Hospitals: Buy| Target Rs 6724
Nomura maintained a buy rating on Apollo Hospitals but raised the target price to Rs 6724 from Rs 5107 earlier.
The global investment bank factors in higher ARPOB growth and is constructive on the expansion plans.
The global investment bank expects an improvement in capacity utilisation to drive expansion in EBITDA in the medium to long term.
The value of the company’s Healthco (pharmacy and 24×7 platform) at $2.1bn. The global investment bank is constructive on the retail segment.
InCred on LTIMindtree: Reduce| Target Rs 5657
InCred downgraded LTIMindtree to reduce from hold earlier but raised the target price to Rs 5657 from Rs 5264 earlier.
The company reported a miss on all fronts in Q3. Weak Q4FY24 revenue guidance & commentary drives a cut in estimates.
Weak revenue delays aspiration to exit with a 17-18% EBIT margin in FY24F.
Goldman Sachs on Asian Paints: Neutral| Target Rs 3300
Goldman Sachs maintained a neutral rating on Asian Paints with a target price of Rs 3300 post-Q3 results.The revenue and volume growth over the ‘Q2+Q3’ period was muted, which is a concern.
The management expects double-digit volume growth but with a negative price/mix of 3- 4%. Management’s outlook on the raw material (RM) prices is deflationary, but margin guidance is maintained.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
