Wednesday's top brokerage calls: TCS, Titan, Hero MotoCorp and more

SUMMARY

Among brokerages, Credit Suisse and CLSA have raised their targets for Titan while Morgan Stanley believes margin pressure for TCS will remain. Here are the top brokerage calls for today:

By CNBC-TV18Jun 10, 2020 8:55:21 AM IST (Published)

Credit Suisse on Titan: Credit Suisse says Titan’s margins are likely to be under pressure despite cost-saving initiatives. The brokerage has cut Titan's FY21 earnings by 35 percent and FY22 by 4 percent.

CLSA on Titan: CLSA maintained 'Sell' rating on the stock but raised the target price to Rs 855 from Rs 810 per share earlier as it believes that share gains and agile response to challenges are encouraging for Titan.

Jefferies on Hero MotoCorp: The brokerage maintained 'Buy' call with a target price of Rs 2,550 as Hero MotoCorp's margin at 10.6 percent was below Jefferies estimates.

Morgan Stanley on TCS: The brokerage said that TCS management is optimistic about maintaining margin but it is likely to be under pressure for the next two quarters.

Morgan Stanley on Kotak Mahindra Bank: FY21 will be a tough year for fees at Kotak Mahindra, given slower loan growth, Morgan Stanley said.

Jefferies on Gujarat Pipavav Port: Jefferies has raised its FY22 profit estimates on lower costs. It maintained 'Hold' rating and increased the target price on the stock to Rs 60 from Rs 53 earlier.

CLSA on Auto: CLSA sees a 15 percent decline in truck sales for FY21 but a 25 percent recovery in FY22.

CLSA on Steel: CLSA sees a downside to flat steel prices going ahead. The brokerage has downgraded both JSW Steel and Tata Steel to 'Sell' from 'Underperform'.

Jefferies on Markets: Rotation to 'value' has become a popular global investing theme; If COVID curve flattens out sooner in key cities, outlook will improve, Mahesh Nandurkar of Jefferies said in a report.