Brokerage Views: Federal Bank, Bharti Airtel, Tata Chemicals, insurance stocks are in focus today
ICICI Banks insurance subsidiaries, ICICI Prudential Life, and ICICI Lombard General are due to report their earnings later in the day.
Global brokerages have shared their views on Federal Bank, Bharti Airtel, Tata Chemicals and insurance companies, as the corporate earnings season picks up. Barring the insurance space, brokerages from the likes of Citi, Credit Suisse and JPMorgan are positive on most of the stocks.
ICICI Bank’s insurance subsidiaries, ICICI Prudential Life, and ICICI Lombard General are due to report their earnings later in the day.
Here are some key stocks under the brokerages' radar:
Federal Bank
Brokerages are bullish on Federal Bank after a strong set of earnings from the private sector lender.
Morgan Stanley has maintained an 'overweight' rating with a revised target of Rs 175 apiece.
Also Read: Federal Bank Q3 Results: Profit, NII jump to record highs as asset quality improves
CITI has retained a 'buy' and raised its target price to Rs 165 apiece.
According to Morgan Stanley, Federal Bank’s net interest income (NII) growth was a big surprise led by higher margins, and core Pre-Provision Operating Profit growth beat estimates.
The bank’s management raised the guidance for net interest margin (NIM) and return on assets (RoA) for FY24. Morgan Stanley raised its earnings per share (EPS) estimate for the stock by 5-12 per cent in for two years ending March 2024.
CITI believes rate hikes continued to support faster asset repricing for Federal Bank.
Bharti Airtel
Citi and Credit Suisse are bullish on the telecom major. Citi has maintained a 'buy' with a target of Rs 940 apiece. Credit Suisse has an 'outperform' call on the stock with a target of Rs 950 apiece.
Tata Chemicals
Morgan Stanley has an 'overweight' call on Tata Chemicals with a target of Rs 1278 apiece.
The brokerage expects market conditions to incrementally improve for the company and complement co-specific triggers to play out going forward.
JP Morgan on insurance companies
Maintained 'overweight' on HDFC Life Insurance and raised target raised to Rs 720 from Rs 670
Maintained 'overweight' on SBI Life Insurance and raised target to Rs 1,630 from Rs 1,600
Maintained 'neutral' on ICICI Prudential Life Insurance and cut its target to Rs 510 from Rs 600
Maintained 'neutral on ICICI Lombard General Insurance and raised target to Rs 1,250 from Rs 1,200
Downgraded LIC to 'neutral' from 'overweight' and cut target cut to Rs 780 from Rs 840
Maintained 'underweight' on New India Assurance and raised target to Rs 100 from Rs 84
Maintained 'neutral' on GIC and raised target to Rs 170 from Rs 150
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