Top brokerage calls for July 31: CLSA bullish on Axis Bank, Tech Mahindra; Morgan Stanley 'underweight' on Hero Moto

SUMMARY

Indian shares are likely to open lower on Wednesday, in line with Asian stocks, on renewed worries over US-China trade war following threats from US President Donald Trump to Beijing. Investors are also awaiting the US Federal Reserve's announcement on interest rates later today. Among brokerages, CLSA is bullish on Axis Bank while Credit Suisse maintained 'outperform' call on Hero Moto. Citi has a 'sell' rating on Dish TV and is 'neutral' on Piramal Enterprises. Here are the top brokerage calls:

By CNBC-TV18Jul 31, 2019 8:21:14 AM IST (Published)

CLSA on Axis Bank: The brokerage maintained a 'buy' rating on the stock but cut its target to Rs 900 per share from Rs 1,000 earlier. It also added that improvement in asset quality trends is key to a re-rating.

CLSA on Tech Mahindra: The brokerage has an 'outperform' call on the stock but cut its target to Rs 740 per share from Rs 800 earlier. According to CLSA, deal wins should translate to a growth recovery over Q2-Q4 and margin resilience is likely to be tested more.

Credit Suisse on Hero Moto: The brokerage maintained 'outperform' rating on the stock but cut its target price to Rs 2,710 per share from Rs 2,920 earlier and added that demand is uncertain in the near term but valuations remain supportive for the stock.

Morgan Stanley on Hero Moto: The brokerage is 'underweight' on the stock and reduced its price target to Rs 2,143 per share from Rs 2,459 earlier. It said that Q1 operating results are in-line with estimates and emissions and electrification risks reduce the visibility on earnings.

Citi on Piramal Enterprises: The brokerage has a 'neutral' call on the stock and slashed its target to Rs 1,990 per share from Rs 2,640 earlier. Growth was slow given the liquidity environment, with loans flat QoQ, the brokerage said.

Citi on Dish TV: The brokerage has a 'sell 'rating on the stock with target cut to Rs 27 from Rs 36 earlier. After the dismal Q4, the brokerage is underwhelmed by Q1 numbers as well.

CLSA on Gujarat Gas: The brokerage has a 'buy' rating on the stock with target raised to Rs 210 per share from Rs 195 earlier. Standalone Q1 net profit far exceeded CLSA's forecast and earnings to double over FY19-21, it added.