Buy, sell, hold: 3 stocks that analysts are watching out
Here are three stocks that brokerage firms are watching out.
Bank of America Merrill Lynch reiterated buy call with target at Rs 549 per. It says margins may disappoint, as migration to floating rate loans has increased. It has cut FY17/18 EPS estimates by 28/20 percent due to higher credit costs. Deutsche Bank has a hold rating on the stock with a target at Rs 520 per share as NIMs and fee trajectory should stay weak in the near-term. It has cut earnings estimates by 5/8 percent for FY17/18. Citi has a buy rating on the stock with target at Rs 600 per share. It says rising non-watchlist slippages raise some concerns in near-term. Credit Suisse maintains outperform rating with target unchanged at Rs 527 per share. It expects FY18 pre-provision profitability to be under pressure.
Goldman Sachs retains buy call with target increased by 5 percent to Rs 1466 per share. It says impact of demonetisation muted with credit costs coming in lower at Rs 110 crore. It has raise FY17-19 EPS estimates by 0.6-3.2 percent as we bake in Q3 trends. IDFC is neutral call on the stock with target at Rs 1110 per share as there is a risk of corporate credit cost catching up with other banks. Macquarie reiterates outperform rating with target increased to Rs 1340 from Rs 1330 per share as stock remains one top picks in the sector. Citi has a buy call on the stock with target at Rs 1390 per share as earnings and growth momentum remain. Credit Suisse maintains neutral call with target increased to Rs 1273 from Rs 1140 per share as growth remains strong, no apparent impact from demonetization.
Macquarie maintains underperform with target cut to Rs 1681 from Rs 1771 per share as business under pressure in Q4 after SC orders banning liquor shops near highways. It has cut earnings by 8-14 percent for FY17-19 as ban on highway liquor shops to impact earnings significantly.