Top brokerage calls for December 5: Credit Suisse bullish on Bharti Airtel; CLSA raises target price of RIL

SUMMARY

Indian shares are set for a cautious start on Thursday ahead of the Reserve Bank of India’s monetary policy decision later in the day. Among brokerages, CLSA is bullish on RIL and Credit Suisse on Bharti Airtel after the companies announced tariff hikes, however, Jefferies has an 'underperform' rating on Vodafone Idea. Here are the top brokerage calls for Thursday:

By CNBC-TV18Dec 5, 2019 8:17:29 AM IST (Published)

CLSA on Reliance Industries: The brokerage has a 'buy' rating on the stock and has raised its target to Rs 2,100 from Rs 1,710 per share. Jio tariffs remain at a discount despite a big hike, said the brokerage, adding that it announced up to 35 percent hike in its tariffs. (Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)

Credit Suisse on Bharti Airtel: The brokerage maintains 'outperform' on the stock with a target of Rs 450 per share. $3 billion fundraise will aid in any potential regulatory payment, said the brokerage. It also noted that the company is well-positioned to capitalise on pricing recovery.

Jefferies on Telcos: The brokerage sees tariff hikes by all telcos as a positive. It noted that stock prices already reflect these hikes. The brokerage is 'underperform' on Vodafone Idea as it expects the market share to fall to less than 15 percent.

Credit Suisse on Sun Pharma: The brokerage maintains a 'neutral' call on the stock with a target of Rs 450 per share. The brokerage has a relatively muted outlook on the company's new drug Cequa.

Macquarie on ICICI Bank: The brokerage has an 'outperform' call on the stock with a target of 615 per share. Both retail and corporate asset quality are fine, said the brokerage adding that it is Macquarie's top pick in the sector.

CLSA on Lemon Tree: The brokerage has a 'buy' rating on the stock with a target price of Rs 80 per share. Channel checks suggest Q3FY20 has been strong for hotels, said the brokerage, adding that in Mumbai, Hyderabad, Delhi, occupancy levels already exceed 70 percent.