Six stocks global brokerages are bullish on
Rising bond yields, a surge in Covid-19 cases, a robust IPO pipeline are among some of the key factors that have been weighing on market sentiment.
The ongoing correction in domestic equity markets wiped out nearly Rs 10 lakh crore of investors wealth in six trading sessions. Extending its fall for the sixth trading session, the Sensex lost 2,181 points, or 4.25%, to trade at 49,097.70 in the morning trade on Friday. The broader NSE Nifty sank 692 points, or 4.55% to 14,484 during the same period.
Rising bond yields, a surge in Covid-19 cases, a robust IPO pipeline are among some of the key factors that have been weighing on market sentiment. A couple of global brokerage firms, including Morgan Stanley, HSBC, Credit Suisse, Nomura and CLSA came out with their ‘Overweight’ and ‘Buy’ ratings on some of the large cap and midcap companies amid the ongoing correction. Have a look:
Bharti Airtel Morgan Stanley has an ‘Overweight’ rating on Bharti Airtel with a price target of Rs 760. The brokerage believes that external validation of Valn to Africa Mobile Money business is a value unlocking step. “Uptick in SOTP of Bharti Airtel may not be material given mobile money’s low EBITDA contribution,” it added.
Infosys, TCS and HCL Technologies HSBC has a ‘Buy’ call on IT majors Infosys and HCL Technologies. Amidst eight key margin push-pulls, the brokerage thinks sector profitability is manageable in (Q4FY21 and Q1FY22). However, absent rupee depreciation, pressures are likely to be visible from the second half of FY22 and in FY23
On the other hand, Credit Suisse believes that Accenture’s strong revenue and bookings growth reaffirms that IT services have entered a technology up-cycle. It is bullish on Infosys, HCL Tech and TCS.
Bajaj Auto Japanese brokerage firm Nomura is positive on Bajaj Auto with a price target of Rs 4,403. It believes that sharp increase in payout ratio to improve return on equity (ROE). “ROEs can go up from 25%/25% to 28%/30% in FY22/FY23F, which is attractive. It can support the re-rating of stock,” Nomura said.
Prestige Estates Brokerage CLSA has ‘Buy’ on Prestige with a target price of Rs 360. “Prestige has created a strong war chest for its next leg of growth. We expect strong rental growth and a healthy yield on cost of around 22% on its upcoming rental portfolio. The stock offers very favourable risk-reward at current levels,” CLSA said.
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