Thursday's top brokerage calls: UltraTech Cement, Colgate and more

SUMMARY

Among brokerages, CLSA and Jefferies raised price targets for UltraTech Cement after its September quarter earnings while maintaining 'buy' calls. Meanwhile, CLSA also upgraded Colgate to 'outperform' from 'underperform' on Q2 results. Here are the top brokerage calls for today:

By CNBCTV18.comOct 22, 2020 9:09:32 AM IST (Published)

CLSA on UltraTech Cement: The brokerage maintains a 'buy' call on the stock and has raised its target to Rs 5,600 from Rs 5,000 earlier. Higher volume & profitability are likely to drive EBITDA for UltraTech, CLSA said after the cement major reported a good set of results for the quarter-ended September.

Jefferies on UltraTech Cement: The brokerage maintains a 'buy' call on the stock and has raised the target to Rs 5,600 per share from Rs 5,150 earlier. UltraTech management’s commentary post Q2 results was fairly positive, the brokerage added; it raised EPS estimates by 5-30 percent.

CLSA on DB Corp: The brokerage maintains a 'buy' call on the stock with a target at Rs 124 per share. Core Hindi print business of DB Corp is driving rapid recovery for the company, CLSA said.

CLSA on Colgate: The brokerage upgraded the stock to 'outperform' from 'underperform' and raised its target to Rs 1,525 from Rs 1,420 per share. It also raised earnings expectations for Colgate by 3-4 percent over FY21-22 after better-than-expected Q2 results.

Nomura on Colgate: The brokerage has a 'buy' call on the stock with a target at Rs 1,730 per share. It raised FY21/22 EPS estimates for the stock by 7 percent/2 percent and expects 12.5 percent EPS CAGR over FY20-23.

Credit Suisse on Colgate: The brokerage maintains an 'outperform' call on the stock with a target at Rs 1,650 per share. It expects strong earnings growth from Colgate in H2FY21 as gross margin expansion may continue.

Jefferies on Newgen Software: The brokerage maintains a 'buy' call on the stock with a target raised to Rs 320 per share from Rs 250 earlier. Sharp margin expansion and 7x YoY jump in profits of Newgen Software surprised positively, added the brokerage.

Kotak on Bajaj Finance: The brokerage maintains a 'reduce' call on the stock with a target at Rs 3,000 per share. It added that it will wait for better entry points into Bajaj Finance as current valuations are rich.