Global View: Bharti Airtel, Dr. Lal Path Labs, DLF and Indian Oil can offer 31-58%

Amid positive global cues, Indian markets continued gains for the third consecutive session on Wednesday. However, investors may see a stock-specific move in Bharti Airtel, Dr Lal Path Labs, DLF and IOC where brokerages around the world have released their reports on business growth, or earnings outlook.

According to G Business TV, we’ve compiled a list of recommendations from various global brokerage firms:

Bharti Airtel

Expected Revenue and EBITDA (Interest, Taxes, Depreciation and Earnings before Payment) Mobile business in 4Q, CLSA maintained a buy rating on Airtel with a target price of Rs 953, which is 35 per cent higher than Tuesday’s close of Rs 707.5 per share.

Similarly, even Nomura gives a buy rating with a target price of Rs 855 per share; JPMorgan and Credit Suisse have maintained an overweight rating with a target price of Rs 900 per share.

Although Jefferies slightly modified its target price from Rs 860 to Rs 880 per share, it said the March quarter was slightly disappointing for DTH and Africa business.

Dr. Lal Path Labs

CLSA gives a sell call on the stock with a target price of Rs 2100 per share, which is below Rs 2185 per share ending Tuesday. This is mainly due to increasing competition, risk-reward unfavorable and valuation is still costly, brokerage said.

In contrast, Citi gave a buy rating with a target price of Rs 3,460 per share, indicating a rise of more than 58 per cent and Morgan Stanley maintained a par-weight position with a revised target of Rs 3,015 to Rs 2,383 per share.

Indian Oil Corporation

JP Morgan has maintained an overweight rating with a target price of Rs 163 per share, a 31 per cent rise from Tuesday’s close of Rs 124 per share. That said, the company’s marketing losses continue to grow.

However, Credit Suisse maintains a neutral rating on the IOC with a target price of Rs 146 per share (up 18 per cent).

DLF

Behind a strong balance sheet, UBS offers a buy call for DLF, which is also a favorite stock of brokerages in the sector. It sets a target price of Rs 440 per share, which means a 38 per cent rise from Tuesday’s close of Rs 334 per share.

Where Morgan Stanley maintained an overweight with a target price of Rs 470 per share, indicating a 41 per cent rise in the stock.

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