These are Thursday's biggest brokerage calls: Axis Bank, L&T, Asian Paints and more

SUMMARY

Indian shares are set to open mixed on Thursday as investors await corporate results amid global concerns over spreading coronavirus in China. Here are the top brokerage calls for Thursday:

By CNBC-TV18Jan 23, 2020 9:11:08 AM IST (Updated)

Citi on Asian Paints: The brokerage maintained 'hold' stance with a target price of Rs 1,925 per share. Citi said it was a surprise that over 3 percent revenue growth came on double-digit volume growth.

Morgan Stanley on RBL Bank: The global brokerage gave an 'underweight' stance on RBL Bank with a price target of Rs 240 on the stock as asset quality remains weak ith 80 percent of stressed accounts slipping into NPLs.

Citi on L&T: The global brokerage has set a target price of Rs 1,700 per share with a 'buy' rating on the stock. L&T's execution and ordering prospect for Q4 is strong, and the stock remains our top pick, Citi wrote in its report after the infra major’s Q3 earnings on Wednesday.

CLSA on L&T: The brokerage gave 'buy' rating on the stock at a target price of Rs 1,730 as L&T is a good proxy for domestic capex. The stock is inexpensive and it is at the cusp of next domestic capex cycle upturn, says CLSA.

Credit Suisse on L&T: The global brokerage maintained 'neutral' stance on the stock at a target price of Rs 1,460 as revenue execution of Rs 36,300 crore well below Credit Suisse's expectation. It notes that all the revenue growth was delivered by the services segments.

Morgan Stanley on L&T: The global brokerage maintained 'overweight' stance and lowered the price target of Rs 1,556 per share as third-quarter results were below expectations. Morgan Stanley, however, expects a stronger fourth quarter as execution challenges recede and cash flows too are expected to improve.

Nomura on L&T: The brokerage maintained 'buy' rating on L&T with a target price of Rs 1,715 per share as stable working capital levels lead to strong cash generation for the infra conglomerate.

Kotak Equities on L&T: The domestic brokerage retained 'buy' rating on L&T at a target price of Rs 1,550 per share on reasonable valuations. Kotak Institutional Equities says near-term pipeline improves case for double-digit FY21 revenue growth.

Kotak Equities on Axis Bank: The domestic brokerage gave 'reduce' stance on the lender's stock at a target price of Rs 740 per share as 5 percent YoY earnings growth was led by a lower tax rate. The slippages are stubbornly high i.e. 4 percent of loans in this quarter, it noted, with higher provisions could be a near-term risk.

IDFC Securities on Axis Bank: The brokerage expects Axis Bank to enhance its competitive position in the banking sector. IDFC Securities has maintained 'outperform' stance with a target price of Rs 830 per share.

HSBC on Axis Bank: The brokerage gave a 'buy' rating on Axis Bank stock at a target price of Rs 930 as consistency in delivery should now drive re-rating.

Citi on Axis Bank: The brokerage gave a target price of Rs 850 with a 'buy' rating on the stock as a reduction in BB and Below Book and NPA recovery could lead to better trends in FY21.

Edelweiss Securities on Asian Paints: The brokerage gave a price target of Rs 2,075 on the stock with a 'buy' rating as domestic volume jumped 11 percent YoY on a high base of 22 percent.