Posted on by Yashi Gupta

Monday’s top brokerage calls: Reliance Industries, ICICI Bank, ITC, and more

Bernstein on ICICI Bank: The brokerage has an ‘outperform’ rating on the stock with the target at Rs 790 per share. It noted that the company has a digital focus leading to granular loan growth. It added that the bank’s margin is at an all-time high aided by a low cost of funds.
Citi on ITC: The brokerage has a ‘neutral’ call on the stock with the target at Rs 210 per share. It noted that the company has delivered no surprises in operationally in the first quarter results.
CLSA on ICICI Bank: The brokerage has a ‘buy’ call on the stock with the target at Rs 940 per share. According to the brokerage, the lender is now consistently delivering sector-best growth in loans/core pre-provision operation profit.
CLSA on ITC: The brokerage has a ‘buy’ call on the stock with the target at Rs 265 per share. The brokerage sees a recovery in its overall business and margin profile as the economy normalises.
GS on Ambuja Cements: The brokerage has a ‘buy’ call on the stock with the target at Rs 423 per share, higher than the previous target of Rs 370. Goldman Sachs sees the valuation gap narrowing between Ambuja Cements and larger peers, going forward.
JPMorgan on Ambuja Cements: The brokerage has a ‘neutral’ rating on the stock with the target at Rs 350 per share. The brokerage believes the company could announce more expansions over the next 12 months.
JPMorgan on Biocon: The brokerage has a ‘neutral’ rating on the stock with the target at Rs 355 per share. It noted that the company has limited scope for meaningfully higher revenues from current launches.
JPMorgan on ICICI Bank: The brokerage has an ‘overweight’ rating on the stock with the target at Rs 675 per share. The brokerage firm believes the coming quarters should be better for the lender in terms of growth and asset quality.
JPMorgan on Reliance Industries: The brokerage has a ‘neutral’ rating on the stock with the target at Rs 2,250 per share. The brokerage noted that the company’s O2C and E&P offset weak consumer business in another muted quarter. It further said that company’s earnings are unlikely to help the stock reverse its underperformance.
Macquarie on Reliance Industries: The brokerage has an ‘underperform’ rating on the stock with the target at Rs 1,350 per share. It noted that the company hasn’t sent updates on the new energy business, JioPhone+, O2C stake sale and the acquisition of JustDial.
Macquarie on United Spirits: The brokerage has an ‘underperform’ call on the stock with the target at Rs 480 per share. The brokerage firm sees risks to the company from input cost inflation. It added that the company is among “our least preferred names.”
Morgan Stanley on Biocon: The brokerage has an ‘equal-weight’ call on the stock with the target at Rs 371 per share. It noted that the company’s current portfolio of biosimilars is taking time to gain market share and new products are stalled in the regulatory process.
Morgan Stanley on ICICI Bank: The brokerage has an ‘overweight’ call on the stock with the target at Rs 900 per share. It noted that the lender remains its top pick in the banking sector. It further added that while slippages elevated above estimate, the net slippages are in line with estimates given strong recoveries.
Morgan Stanley on ITC: The brokerage has a ‘buy’ call on the stock with the target at Rs 251 per share. It noted that the company’s revenue and profits are ahead of estimates.
Morgan Stanley on Reliance Industries: The brokerage has an ‘overweight’ rating on the stock with the target at Rs 2,262 per share. It noted that the company’s earnings quality was good with energy in the driver’s seat.
Nomura on Ambuja Cements: The brokerage has a ‘reduce’ call on the stock with the target at Rs 360 per share. The brokerage firm downgraded the stock after recent outperformance.
Nomura on ICICI Bank: The brokerage has a ‘buy’ call on the stock with the target at Rs 790 per share. It said the leader has a strong core pre-provision operating profit but its asset quality has surprised negatively.
Nomura on JSW Steel: The brokerage has a ‘neutral’ rating on the stock with the target at Rs 747 per share. It noted that the company has delivered strong results in the first quarter as raw material prices rose. Any further rise in steel price is an upside risk, it added.