Tuesday’s top brokerage calls: Axis Bank, SBI Cards, Bharti Airtel and more

SUMMARY

Brokerage calls: Nomura and CLSA have continued with their 'buy' calls on Axis Bank after the private sector lender reported its Q3 earnings. Credit Suisse has retained its 'outperform' rating on the stock. Here's the complete list of brokerage views today:

By CNBCTV18.comJan 25, 2022 8:48:21 AM IST (Updated)

Nomura on Axis Bank | The brokerage has maintained a 'buy' call on the stock with a target price of Rs 980. The lender's NIM and asset quality improved in Q3, but higher costs pulled its core pre-provision operating profit growth lower, according to Nomura.

Credit Suisse on Axis Bank | The brokerage has continued with its 'outperform' rating on Axis Bank with a target price of Rs 960. The lender's Q3 numbers beat estimates on the growth and asset quality fronts, according to Credit Suisse, which continues to expect a 15 percent return on equity in FY23 and FY24.

CLSA on Axis Bank | The brokerage retained a 'buy' call on the stock with a target price of Rs 1,080. The lender posted a strong set of Q3 numbers and the growth in its pre-provision operating profit (PPoP) is in line with estimates due to a further spike in Opex, according to CLSA.

Citi on Axis Bank | The brokerage has maintained a 'buy' rating on the stock with a target price of Rs 1,000. The lender delivered on much-awaited improvement on the growth and NIM fronts in Q3, and offers a valuation discount to peers, according to Citi.

Morgan Stanley on SBI Cards | The brokerage has an 'overweight' rating on the stock with a target price of Rs 1,300. The company's adjusted profit before tax for Q3 is 22 percent below estimates owing to higher provisions and expenses, according to Morgan Stanley.

Jefferies on Bharti Airtel | The brokerage has a 'buy' call on the telecom operator's stock with a target price of Rs 925. The company's announcement of equity issuance on a preferential basis has come as a surprise, according to Jefferies. The potential capital raise will be a near-term overhang, the brokerage adds.

CLSA on Ramco Cements | The brokerage has downgraded the stock to 'underperform' from 'outperform', and reduced its target price to Rs 970 from Rs 1,180. The company's Q3 EBITDA was below estimates on lower profitability contrary to industry trends, according to CLSA.

Credit Suisse on L&T Finance | The brokerage has an 'outperform' call on the stock but reduced its target price to Rs 90 from Rs 100. The company's operational performance remains weak, according to Credit Suisse.