Global View: Tata Motors, Maruti Suzuki, Bajaj Auto & TVS Motor could give 20-30% return in next 12 months
Indian market opened 2% higher as the benchmarks extended gains for the third session in a row on Thursday.
Indian market opened 2% higher as the benchmarks extended gains for the third session in a row on Thursday. The Nifty50 started above 16,700, while the Sensex gained more than 1200 points in the opening trade on the day when election results for five states will be announced. There will be also stock-specific action in which global brokerage came out with their reports on business development, or earnings outlook.
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We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:
The global investment bank, Jefferies, in a note highlighted that rally in commodities pushed out a margin recovery thesis which led to a target price cut on most companies in the automobile space.
The risk of higher ownership cost hurting demand is still low. The global investment bank slashed FY23 EPS by 7-45%, FY24 cuts at 1-11%.
A sharp correction offers buying opportunity for investors who have a time horizon of 1-2 years. Preferred picks include names like Tata Motors, Maruti Suzuki, and TVS Motors.
Jefferies raised Ashok Leyland in the pecking order post a sharp fall. It is also positive on Eicher Motors, Bajaj Auto, and Bharat Forge.
The global investment bank retains hold on Hero MotoCorp, and maintains underperform on Motherson Sumi and M&M.
Tata Motors: Buy| Target Rs 540
Jefferies maintained a buy rating on Tata Motors but slashed target price to Rs 540 from Rs 635 earlier which translates into an upside of over 33 per cent from Rs 406 recorded on 9 March.
Maruti Suzuki: Buy| Target Rs 9100
Jefferies maintained buy rating on Maruti Suzuki but slashed target price to Rs 9100 from Rs 10500 earlier which still translates into an upside of over 29 per cent from Rs 7027 recorded on 9 March.
Bajaj Auto: Buy| Target Rs 4000
Jefferies maintained buy rating on Bajaj Auto but slashed target price to Rs 4000 from Rs 4230 earlier which still translates into an upside of nearly 20 per cent from Rs 3339 recorded on 9 March.
TVS Motors: Buy| Target Rs 730
Jefferies maintained a buy rating on TVS Motors but slashed the target price to Rs 730 from Rs 850 earlier which still translates into an upside of over 30 per cent from Rs 555 recorded on 9 March.
(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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