Top brokerage calls for July 29: Jefferies raises TP on ICICI Bank; UBS maintains 'sell' on Bajaj Auto

SUMMARY

Indian benchmark indices are likely to start flat on Monday, tracking sluggish Asian stocks, as investors remained cautious ahead of US-China trade talks and the Federal Reserve’s monetary policy decision this week. Among brokerages, Jefferies was bullish on ICICI Bank and raised its target price, while UBS and Credit Suisse remained bearish on Bajaj Auto. Here are the top brokerage calls for Monday:

By CNBC-TV18Jul 29, 2019 8:19:24 AM IST (Published)

Jefferies on ICICI Bank: The brokerage gave a 'buy' call on the stock with target raised to Rs 480 per share from Rs 455 earlier. It expects improvement in the lender's core operational profit.

UBS on Bajaj Auto: The brokerage rated the stock 'sell', with the target at Rs 2.400 per share. High inventory adds to downside risk, it said, adding that price is expected to rise due to safety and BSVI norms.

Kotak Institutional Equities on Bajaj Auto: The brokerage maintained a 'reduce' call on the stock and cut its target to Rs 2,500 per share from Rs 2,700 earlier. The slowdown is led by a weak rural economy and a sharp rise in regulatory costs, it said.

Goldman Sachs on Maruti Suzuki: The brokerage maintained a 'buy' call on the stock with a target at Rs 7,210 per share. It added that the company remained the best-positioned stock going into BS-VI transition.

UBS on Maruti Suzuki: The brokerage was bearish on the stock with a target at Rs 5,800 per share. Volume outlook remains weak with share decline in both rural and urban markets, it added.

Credit Suisse on Escorts: The brokerage maintained an 'outperform' rating on the stock with a target at Rs 920 per share. It added that the weaker tractor margin has been compensated for by stronger railways business.

Nomura on Jubilant Life: The brokerage gave a 'buy' call on the stock with target raised to Rs 661 per share from Rs 660 per share. The brokerage made marginal changes to its estimates with FY20 EPS reduced by 1.7 percent.

Jefferies on JSW Steel: The brokerage was bearish on the stock with target reduced to Rs 216 per share from Rs 233 per share. Overseas assets remain a drag and net debt could rise further due to ongoing Capex, Jefferies added.