Global View: Bharti Airtel, Dr Lal Path Labs, DLF and Indian Oil can give 31-58% return
Indian markets continue to gain for the third straight session on Wednesday amid positive global cues.
Indian markets continue to gain for the third straight session on Wednesday amid positive global cues. However, Investors may see a stock-specific action in Bharti Airtel, Dr Lal Path Labs, DLF and IOC in which global brokerages came out with their reports on business development, or earnings outlook.
We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:
Bharti Airtel
On the better-than-expected revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) in the mobile business during Q4, CLSA maintained a Buy rating on Airtel with a target price of Rs 953 apiece, implying a 35 per cent upside from Tuesday’s closing of Rs 707.5 a share
Similarly, even Nomura gives a Buy rating with a target price of Rs 855 per share; JP Morgan and Credit Suisse maintained an Overweight rating with a target price of Rs 900 per share each.
While Jefferies slightly revised its target price to Rs 880 per share from Rs 860 per share, it said the DTH and Africa business little disappointing during the March quarter.
Dr Lal Path Labs
CLSA gives a Sell call on the stock, with a target price of Rs 2100 per share, which is below Tuesday’s closing of Rs 2185 per share. This is mainly on the back of increasing competition, risk-reward unfavourable, and valuations still expensive, the brokerage said.
On the contrary, Citi gives a Buy rating with a target price of Rs 3460 per share, implying an upside of over 58 per cent and Morgan Stanley maintained an Equal-weight stance with a revised target of Rs 2383 from Rs 3015 per share.
Indian Oil Corporation
JP Morgan maintained an Overweight rating with a target price of Rs 163 per share, which implies over 31 per cent upside from Tuesday’s closing of Rs 124 per share. It said the marketing losses of the company are continuously growing.
While Credit Suisse maintained a Neutral rating on IOC with a target of Rs 146 per share (18 per cent upside).
DLF
On the back of a strong balance sheet, UBS gives a Buy call for DLF, which is also a favourite stock of brokerage in this sector. It sets a target of Rs 440 per share, implying a 38 per cent upside from Tuesday’s closing of Rs 334 per share.
While Morgan Stanley maintained Overweight with a target price of Rs 470 per share, implying 41 per cent upside in the stock.
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