Global View: Siemens, Dr Reddys Laboratories, Honeywell Automation could give 17-27% return
Indian markets that closed with gains of about 1 per cent for the week ended 3rd December could consolidate on Monday amid muted trend seen in Asian markets.
Indian markets that closed with gains of about 1 per cent for the week ended 3rd December could consolidate on Monday amid muted trend seen in Asian markets.
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We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:
Siemens: Buy
Jefferies maintained its buy rating on Siemens but slashed its target price to Rs 2,560 from Rs 2670 earlier. A cut in target price still translates into an upside of over 17 per cent from Rs 2185 recorded on 3rd December.
The management is optimistic about the business. The center is likely to see central government sector infra spend rising, and an uptick in the private sector.
The state spending scale-up will be gradual. The company will benefit from margin traction as revenue rises on higher decarbonization.
The global investment bank lowers FY22-23 earnings per share (EPS) by 2-4% to factor margin impact of commodity/logistics costs.
Dr Reddy’s Laboratories: Buy
Nomura maintained its buy rating on Dr Reddy’s Laboratories with a target price of Rs 5856 that translates into an upside of over 27 per cent from Rs 4598 recorded on 3rd December.
None of the observations for Duvvada facility is classified as a 'repeat observation, and some observations are procedural in nature.
As a base case, the global investment bank expects the pharma company to address observations to satisfaction of the US Food and Drug Administration (FDA).
There are no indications of any significant lack of control on current processes
Honeywell Automation India Ltd: Buy
Nomura maintained its buy rating on Honeywell Automation India Ltd but slashed its target price to Rs 47,792 from Rs 53,750 earlier. A cut in target price still translates into an upside of over 23 per cent from Rs 38,633 recorded on 3rd December.
The global investment bank cuts FY23/24 EPS by 15% to factor in longer execution lead times. Longer-term outlook remains robust as digitalisation spends pick up, said the note.
A slowdown in private capex, and export demand from the parent are key risks. Additionally, a potential increase in commodity prices and consequent margin pressure are other key risks that investors should watch out for.
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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