Wednesday's top brokerage calls: UltraTech Cement, Nestle and more

SUMMARY

Among brokerages, CLSA and Citi raised the target price for UltraTech Cement post its June quarter numbers while Nestle earnings failed to impress brokerages. CLSA downgraded the stock to 'sell' and cut its target price. Here are the top brokerage calls for the day:

By CNBCTV18.comJul 29, 2020 9:21:50 AM IST (Updated)

CLSA on UltraTech: The brokerage upgraded the stock to 'buy' from 'outperform' and raised the target to Rs 5,000 per share from Rs 4,160 earlier. It says Q1 results ticked all boxes with high profitability and sharp debt reduction.

Citi on UltraTech Cement: The brokerage maintained a 'buy' call on the stock with the target raised to Rs 5,000 per share from Rs 4,500 earlier. UltraTech remains constructive as producers will continue to focus on margin and profit, said Citi.

Credit Suisse on UltraTech: The brokerage maintained an 'outperform' rating on the stock with the target raised to Rs 4,800 from Rs 4,500 earlier. It said it is positive on the cement sector due to the value of assets and favourable pricing

CLSA on Nestle: The brokerage downgraded the stock to 'sell' from 'underperform' and cur target to Rs 16,100 from Rs 16,500 earlier. It expects double-digit growth momentum to resume in Q3 as operations normalise.

CLSA on IndusInd Bank: The brokerage maintained a 'buy' call on the stock and raised the target to Rs 665 per share from Rs 600 earlier. It said that the lender's PPoP performance is in line with expectations and it expects an RoE of 14 percent.

Morgan Stanley on MCX: The brokerage is 'overweight' on the stock and raised the target to Rs 2,000 from Rs 1,600 earlier. MS says Multi Commodity Exchange's average daily traded value in July has recovered from Q1 lows and should rise further as crude oil average daily trading volume (ADTV) normalises.

CLSA on Insurance: The brokerage has a positive view on the sector and initiates SBI Life with 'outperform' rating. It added that it sees a potential for rerating in Max Financial if the Axis Bank deal goes through.

Credit Suisse on NBFCs: As per the brokerage, NBFCs are losing market share in new CV and PV business to banks but are dominant in 2-wheelers. It has an 'outperform' call on Cholamandalam Finance but downgraded M&M Finance to 'neutral'.