Top brokerage calls for September 26: Credit Suisse downgrades Jubilant Food; CLSA cuts target price for Zee

SUMMARY

Indian shares are expected to open marginally higher, in line with global markets after US President Donald Trump said a trade deal with China is likely to happen soon. But rising oil prices and political uncertainties in the US may cap gains. Among brokerages, CLSA maintains a 'buy' on Zee but has cut its target price, while Credit Suisse downgraded Jubilant Foodworks. Here are the top brokerage calls for the day:

By CNBC-TV18Sept 26, 2019 8:07:33 AM IST (Published)

Credit Suisse on Jubilant Foodworks: The brokerage downgraded the stock to 'underperform' from 'neutral' and cut target price to Rs 1,200 per share. It also cut the same-store sale growth estimate for FY20 to 4.5 percent.

CLSA on Zee: The brokerage has a 'buy' rating on the stock but cut its target price to Rs 450 per share from Rs 515 earlier. The risk to share pledging crisis remains despite extension for loan repayment, it said, adding that it is positive on the stock due to growing business and compelling valuation.

HSBC on MOIL: The brokerage upgraded the stock to 'buy' from 'hold' with a target of Rs 180 per share. It said that the company is supported by healthy margins from the low-cost operations and that the valuation at current levels looks attractive.

Morgan Stanley on Eicher Motors: The brokerage is 'equal-weight' on the stock with a target of Rs 17,052 per share. The brokerage believes that the share price will fall relative to index over the next 30 days. It also added that the lower-priced variants, the competition will put pressure on a margin that Royal Enfield enjoys.

Credit Suisse on L&T: The brokerage maintains 'outperform' rating on the stock with a target of Rs 1,750 per share. There are strong execution and order inflow momentum in the domestic market, it said, adding that the Middle East business is stable with strong inflows from the hydrocarbon sector.