We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
BofA on Indus Towers: Buy | Target price: Rs 450
BofA maintained a buy rating on Indus Towers but cut the target price to Rs 450 from Rs 490. Commenting on the AGR decision, BofA noted that there is no direct impact on Indus, but a derivative effect may occur, with no expected impact on tenancy growth. However, multiple de-rating is likely, and the possibility of a lump-sum payment or special dividend is low.
Investec on IndiGo: Sell | Target price: Rs 4,050
Investec has downgraded the stock to sell from hold with a target price of Rs 4,050.
The company’s misaligned valuation overlooks margin risk. Despite showing unexciting growth, it maintains a premium valuation. Margin volatility is unavoidable, presenting an unfavorable risk-reward scenario. While the large aircraft order book offers growth visibility, it does not ensure earnings growth due to its higher sensitivity to margins. Additionally, earnings growth over the next three years is expected to remain lackluster.
Nomura on Vodafone Idea: Buy| Target price: Rs 15
Nomura has upgraded Vodafone Idea to buy from an earlier neutral with a target price at Rs 15.
Nomura believes that the worst is now behind us as the AGR overhang concludes. The recent sharp correction, combined with a strong industry outlook, presents a buying opportunity, as government support can significantly alleviate Vodafone Idea’s funding gap.
UBS on Vodafone Idea: Target price: Rs 12-24
UBS stated that Vodafone Idea’s fair value per share can range from Rs 12 (with no relief on AGR) to Rs 24 (with full relief or waiver of AGR). The stock is currently slightly below the implied fair value. UBS noted that they do not rule out an equity conversion or deferral; however, it remains to be seen whether these measures will be NPV positive for equity holders.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
