Friday's top brokerage calls: Auto stocks, Phoenix Mills and more

SUMMARY

Among brokerages, CLSA prefers two-wheeler stocks over passenger vehicles. It is also bullish on Phoenix Mills and has raised its target price. Here are the top brokerage calls for today:

By CNBCTV18.comAug 28, 2020 8:48:22 AM IST (Published)

CLSA on Autos: The brokerage continues to prefer two-wheelers over passenger vehicles. Hero MotoCorp and Eicher may see an increase of 7-12 percent in EPS in case of a GST rate cut for 2-wheelers, it added.

CLSA on Phoenix Mills: The brokerage has a 'buy' call on the stock and raised the target to Rs 790 per share from Rs 742 earlier. Equity raise of Rs 1,100 crore in this environment is testimony to Phoenix Mills’ strong asset portfolio, it added.

Goldman Sachs on IT: The brokerage believes Indian IT is positioned favorably to benefit from the third wave of outsourcing. It also increased revenue and EPS estimates by up to 7 percent and target by 23 percent on average.

CLSA on Financials: As per the brokerage, a complete interest waiver for the moratorium will have a huge impact on banks, but that looks highly unlikely. It remains positive on SBI and private banks among financials.

CLSA on JSW Steel: The brokerage has a 'sell' call on the stock with a target at Rs 185 per share. JSW Steel’s recent rally overdone cost pressure to limit margin improvement, it said.

Nomura on Adani Ports: The brokerage maintains 'buy' call on the stock and raised the target to Rs 420 per share from Rs 320 earlier.

Jefferies equity strategy: Risk of higher taxes on cessed products is unlikely in FY21, said the brokerage, adding that this will be positive for cessed commodities like tobacco/cigarettes and aerated beverages.