CLSA remains positive on
after a decent performance in the June quarter and has maintained a ‘Buy’ call with a target price of Rs 465, hinting at a 20 per cent upside.
“Q1 was a good start but a long way to go,” said the brokerage, which believes that demand would be key ahead. “Results are encouraging, but the run rate is not enough for EPS neutrality, and the path to EPS neutral in FY 23 looks steep.”
However, JP Morgan remains underweight on
with a target of Rs 72, a 10 per cent decline from its previous close near Rs 80.
The estimates and target cut are due to weak underwriting. It also expects the industry to witness strong competition and high claim inflation hit the market.
Another foreign broker, Morgan Stanley, remained underweight on
, with a target price of Rs 240 on the counter, signalling a 15 per cent upside.
The brokerage expects the stock to underperform amid the liquidity and capital buffer. “Credit cost is expected to remain elevated as slippage remains above the normalized levels,” it added.
Commenting on the IT sector, Morgan Stanley said that near-term headwinds and a lack of catalysts could keep the performance under pressure. “Sector will continue to see headwinds near term and the downgrades cycle to continue.”
The global brokerage remains overweight on
, , and but has slashed target price on all others.
On the other hand, the brokerage maintained equal-weight on
and but trimmed the targets for both the IT counters. However, it has upgraded L&T Infotech to equal-weight, but the target price has been slashed for it as well.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
