Top brokerage calls for August 6: Morgan Stanley initiates coverage on L&T Info, BofAML downgrades Bharat Forge
Indian shares are likely to open lower on Tuesday following losses in global markets over escalating US-China trade war. Moreover, the tension in Jammu and Kashmir over scrapping of Article 70 and continued foreign capital outflow may also weigh on the markets. Asian stocks declined after the US designated China a currency manipulator. BSE Sensex and NSE’s Nifty50 ended over 1 percent lower in the previous session over selloffs in global equities. At 7.05 AM, the SGX Nifty futures traded 81.50 points, or 0.75 percent, lower at 10,788, indicating a negative start for the Sensex and the Nifty 50.
Morgan Stanley on L&T Info: The brokerage initiates coverage on the stock with ‘overweight’ rating and target at Rs 1,780 per share. The stock has demonstrated strong growth and stability since IPO and the brokerage expects its core business to outpace most peers.BofAML on Bharat Forge: The brokerage downgraded the stock to ‘neutral’ from ‘buy’ and cut its target price to Rs 450 per share from Rs 540 earlier. Slowing export momentum is a risk to near-term earnings and outlook for exports across Class 8 trucks and industrial forgings have weakened, the brokerage added.Macquarie on Ujjivan: The brokerage has a ‘neutral’ call on the stock but cut its target to Rs 260 per share from Rs 350 earlier. It expects a 6.8 percent rise in EPS over FY20-21 on faster growth.CLSA on Reliance Industries: The brokerage has a ‘buy’ call on the stock with a target at Rs 1,530 per share. Jio caped is likely to have peaked in FY19 and demerger of tower and fibre assets should bring down capex intensity, CLSA added.Credit Suisse on LIC Housing: The brokerage has an ‘outperform’ call on the stock with a target at Rs 575 per share. The company continues to gain mortgage market share and is benefitting from NBFC liquidity issues, it added.Citi on Dilip Buildcon: The brokerage has a ‘buy’ call on the stock with target cut to Rs 514 per share from Rs 654 earlier. It cut EPS estimates by 9-12 percent over FY20-22 on higher depreciation and internal costs.Citi on AU Small Finance Bank: The brokerage has a ‘buy’ rating with a target at Rs 720 per share. Overall growth guidance remains at 30-35 percent and the company is slowing on growth if required, it said.
