Top brokerage calls for November 26: Credit Suisse downgrades L&T to 'neutral'; Macquarie bullish on MGL, Gujarat Gas

SUMMARY

The Indian market is set to open in the green on Tuesday, following global markets that surged as trade talks between the US and China gained momentum. The Sensex ended at a record high on Monday while the Nifty50 is only 30 points away from its lifetime high. Among brokerages, Credit Suisse downgraded L&T to 'neutral' from 'outperform' and Macquarie maintained 'outperform' on MGL and Gujarat Gas. Here are the top brokerage calls for Tuesday:

By CNBC-TV18Nov 26, 2019 8:04:25 AM IST (Published)

Credit Suisse on L&T: The brokerage downgraded the stock to 'neutral' from 'outperform' and cut its target to Rs 1,460 from Rs 1,750 earlier. Slowing state and absent of private capex are open risks, said the brokerage, adding that state government orders have been significantly slower this year so far.

Macquarie on Gujarat Gas: The brokerage maintains 'outperform' rating on the stock and raised its target to Rs 240 per share from Rs 210 earlier. The brokerage also increased its earnings estimates by 13-15 percent for FY21/22.

Macquarie on MGL: The brokerage maintains 'outperform' on the stock and raised its target to Rs 1,150 per share from Rs 1,050 earlier. As per the brokerage, valuations are attractive at current levels and it also increased its earnings estimates by 7-11 percent for FY21/22.

Morgan Stanley on Indian Hotels: The brokerage is 'overweight' on the stock with a target at Rs 197 per share. The company expects H2 to be better than H1, it said. It also added that cost efficiencies helped improve margin in H1 in a weak growth environment.

Morgan Stanley on Shree Cement: The brokerage is 'overweight' on the stock with a target at Rs 22,000 per share. QIP capital creates funds to consolidate its capacity market share, said the brokerage, adding that the company may also look for potential M&A opportunities.

Morgan Stanley on Chalet Hotels: The brokerage is 'overweight' on the stock with a target at Rs 408 per share. The company expects a better ADR growth given high occupancies in key markets, the brokerage noted. It also stated that full cash flows may commence from Sahar Retail and Sahar Commercial Projects.