Friday's biggest brokerage calls: Bajaj Finance, Pharma companies and more

SUMMARY

The Indian markets are likely to open higher on Friday, following Asian peers, as they latch onto Wall Street’s overnight gains. The sentiment was positive after crude prices notched their biggest one-day surge on record, helping offset concerns about the depth of a global recession. Among brokerages, HSBC cuts target price for Bajaj Finance, while Morgan Stanley upgraded Cipla to 'overweight'. Here are the top brokerage calls for today:

By CNBC-TV18Apr 3, 2020 8:36:32 AM IST (Published)

HSBC on Bajaj Finance: HSBC maintains ‘buy’ call on Bajaj Finance, cuts target to Rs 3,750 per share from Rs 4,860 earlier. It says recent fall in the stock sharpest ever seen in the past decade.

Morgan Stanley on Pharma: The brokerage cut earnings estimates for FY20-22 for pharma; still forecasts average YoY growth of 28 percent in FY21 and 17 percent in FY22. It also upgraded Cipla to overweight on strong franchise and steady earnings growth outlook.

Morgan Stanley on JSPL: The brokerage maintained an 'equal-weight' rating on the stock with a target price of Rs 195 per share. The company says it has sufficient raw material inventory to run ops till April 14, noted the brokerage.

Credit Suisse on Aurobindo Pharma: The brokerage downgrades the stock to ‘underperform’ from 'neutral' as USFDA approvals may remain weak. Growth in the absence of Sandoz acquisition is likely to be weak, it added.

CLSA Market Outlook: At attractive levels now but may not have hit the final bottom on Nifty, said the brokerage. Bottoms in the four prior over 40 percent declines in the last 30 years took 10-27 months, it added.

Jefferies on V-Guard: The brokerage maintains a 'buy' call on the stock with a target at Rs 240 per share. It added that V-Guard is on a strong footing aided by diversified product slate.

Jefferies on Pharma: While most companies had stopped supplies of ranitidine after USFDA ban, it is still key for Strides Pharma. JB Chem will also see a huge impact if India following the USFDA ban.