Global View: ITC, Titan Company and Cadila Healthcare could yield 10-30% in 12 months

Indian market is likely to consolidate on Friday, tracking muted global cues, but there will be stock-specific action in which global brokerage 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:

ITC: Buy| Target Rs 285

CLSA maintained buy rating on ITC post December quarter results with a target price of Rs 285 that translates into an upside of over 21 per cent from 3 February.

ITC has seen a material top-line recovery, and the FMCG business delivered 9.3% top-line growth in Q3 which is a positive sign.
 

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The global investment bank continues to see a K-shaped trajectory for the FMCG business. Capital allocation concerns are progressively being addressed which is positive.

Titan Company: Overweight| Target Rs 2720

Morgan Stanley maintained an overweight rating on Titan Company post December quarter results with a target price of Rs 2720 that translates into an upside of nearly 10 per cent from Rs 2479 recorded on 3 February.

The Q3 earnings beat Morgan Stanley's estimate and consensus by 16% and 13%. The December quarter performance was strong across all parameters, and the management sounded optimistic for the near term.

Cadila Healthcare: Overweight| Target Rs 543

Morgan Stanley upgraded Cadila Healthcare to overweight from equal weight post December quarter results but slashed the target price to Rs 543 from 664 earlier. The new target translates into an upside of over 30 per cent from Rs 408 recorded on 3 February.

The stock appears to be pricing in near-term challenges. Current valuations are ignoring mid-term opportunities.

The stock is trading at attractive valuations. “We expect mid-teens earnings growth to resume starting in FY2024,” said the note. Growth was led by steady India and EM business in the December quarter.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)