These are Tuesday's biggest brokerage calls: HDFC, IndiGo and more

SUMMARY

Indian share markets are expected to start on a cautious note on Tuesday following a global selloff as fears about the economic impact of coronavirus outbreak curbed risk appetite. Among brokerages, Jefferies remains bullish on HDFC and raised its target price post Q3 earnings, while Credit Suisse has an 'outperform' rating on IndiGo. Here are the top brokerage calls of the day:

By CNBC-TV18Jan 28, 2020 8:12:03 AM IST (Published)

Jefferies on HDFC: The brokerage had a 'buy' rating on the stock and raised its target to Rs 2,745 from Rs 2,510 earlier. Jefferies added that HDFC largely maintained the brokerage's loan growth and margin estimate for FY21/22.

Credit Suisse on HDFC: The brokerage maintained 'outperform' rating on the stock and raised its target to Rs 2,650 from Rs 2,610 earlier. It further noted that operating performance was stable, and the company continued to build a large cushion on provisions.

Credit Suisse on IndiGo: The brokerage had an 'outperform' rating on the stock with a target at Rs 1,900 per share. Credit Suisse stated that IndiGo has great execution on yield amid demand slowdown and operational headwinds.

Credit Suisse on United Spirits: The brokerage upgraded the stock to 'outperform' from 'neutral' with a target at Rs 700 per share. As per the brokerage, near-term pressures are now fully priced in but risk-reward remain favourable.

Ambit on IndiGo: The brokerage had a 'buy' call on the stock and raised its target to Rs 1,823 per share from Rs 1,993 earlier. It also raised the stock's FY20-22 EBITDA estimates by 15-20 percent.

Ambit on Dr Reddy's: The brokerage had a 'buy' rating on the stock and raised its target to Rs 3,615 from Rs 3,217 per share. R&D expense increase will be lower than the sales movement in FY21/22, it added.

CLSA on Dr Reddy's: The brokerage downgraded the stock to 'outperform' from 'buy' with a target at Rs 3,450 per share. It cut the stock's FY20 EPS estimates to build in an impairment charge.

CLSA on Torrent Pharma: The brokerage maintained 'outperform' rating on the stock but raised target to Rs 2,050 from Rs 1,950 earlier.

HSBC on Dr Reddy's: The brokerage maintained a 'buy' call on the stock with the target price raised to Rs 3,430 from Rs 3,230 per share. It added that outlook looks robust for all of Dr Reddy's focus markets.