Top brokerage calls for November 11: CLSA maintains 'sell' on IPCA Labs; Credit Suisse raises target price for M&M

SUMMARY

Indian shares are likely to open in red on Monday on the back of muted global trades and amid concerns of continued slowdown in the economy. Asian shares traded marginally higher after positive statements from the United States over the weekend about trade talks with China. However, uncertainties around the final deal capped gains. Among brokerages, Credit Suisse cut the target price of Bank of Baroda, while CLSA was bullish on IPCA Labs. Here are the top brokerage calls for Monday:

By CNBC-TV18Nov 11, 2019 10:12:11 AM IST (Updated)

Credit Suisse on Bank of Baroda: The brokerage was 'neutral' on the stock but cut its target to Rs 105 per share from Rs 115 earlier. Two quarters into the merger, the company was yet to see synergy benefits, said the brokerage, adding that core cost-to-income remained high at 50 percent.

Credit Suisse on M&M: The brokerage maintained 'outperform' rating on the stock and raised its target to Rs 740 per share from Rs 720 earlier. Momentum seen in tractors could sustain over the next 6-12 months, said the brokerage, adding that transition to BS-VI could create some jitters.

CLSA on IPCA Labs: The brokerage maintained 'sell' call on the stock but raised its target to Rs 950 per share from Rs 810 earlier. Operating leverage benefit should continue in FY20, said the brokerage, adding that it remained concerned on delays in US resolution.

CLSA on Dr Lal Pathlabs: The brokerage maintained 'buy' rating on the stock and raised its target to Rs 1,800 per share from Rs 1,330 earlier. Q2 results were ahead of estimates with another quarter of strong volume growth, said the brokerage, adding that volume remained the point of focus.

Jefferies on Nestle: The brokerage had a 'hold' rating on the stock with a target at Rs 13,400 per share. It said that it didn't find risk-reward attractive enough and added that absolute upside looks limited over the 12-18 month horizon.

Nomura on Bharat Forge: The brokerage maintained a 'neutral' call on the stock but raised its target to Rs 458 per share from Rs 408 earlier. Key upside risk for the company was winning a defence gun order, while key downside risk was a prolonged CV downcycle in the US and India, noted the brokerage.