Published On: Wed, Dec 4th, 2019

sensex: Analyst Calls: Eicher Motors, Bajaj Auto, Bharti Airtel, Biocon

Good morning!

The domestic stock market on Wednesday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 36 points lower this morning, signalling a weak start for Dalal Street.

As you head for the day’s trade, here is a compilation of overnight analyst calls on various stocks.

• Ambit Capital has retained buy rating on
Eicher Motors and raised target price to Rs 24,673 against Rs 23,059 earlier. After wholesales declined around 22 per cent over February-September 2019, Royal Enfield has around 17 days inventory and clocking flat to mid-single digit yearon-year decline in retails, said Ambit. Interaction with dealers suggests around 20 per cent rise in monthly retails vs pre-festive demand, even without help of lower priced Bullet-X/Classic-S, the brokerage said. Royal Enfield would deliver around 12 per cent volume CAGR in FY20-22, post around 11 per cent decline in FY20, said Ambit. The stock ended down 1.7 per cent at Rs 21359.65 on Tuesday.

• Edelweiss has upgraded
Bajaj Auto to buy from hold and raised target price to Rs 3651 from Rs 3162. The brokerage believes Bajaj Auto is better positioned than peers to handle the BS-VI transition as around 40 per cent of its exports will be immune to the change and domestic three-wheeler cargo segment will also benefit. The brokerage also sees perceptible change in management’s approach with focus on sales, after sales etc rrather than just products. The stock ended up 3.2 per cent at Rs 3261.35 on Tuesday.

• CLSA has retained buy rating on
Bharti Airtel and raised target price to Rs 560 from Rs 515. Bharti Airtel has raised prepaid tariffs by 15-40 per cent and has factored in around 40 per cent hikes by FY22 versus 35 per cent factored earlier, said CLSA. Given Bharti Airtel’s higher-than-expected tariff hikes and forecasts upgrade CLSA expects it to deliver a 24 per cent compounded growth in EBITDA over FY21-22. Bharti Airtel’s aggressive network rollouts and superior execution could drive upsides to market-share forecast of 30 per cent by FY22, said CLSA. The stock ended up 0.1 per cent at Rs 58.95 on Tuesday.

• Citigroup has buy rating on
Biocon with a target price of Rs 350 after the company and Mylan announced launch of Ogivri in the US. This ticks off another box in Biocon’s biosimilars journey in developed markets — it was the first to market with biosimilar PegFilgrastim and the first to launch both strengths of biosimilar Trastuzumab, the brokerage said. The stock ended flat at Rs 285.90 on Tuesday.

• Kotak Institutional Equities has an add rating on
HDFC Life Insurance Company with a fair value of Rs 605. HDFC Life will remain at the cusp of innovation and hence a bellwether for the life insurance industry, said Kotak Institutional. Other large players have not forayed much into non-par business , following a deferred annuity policy launched last year and Sachay Plus early this year, said Kotak Institutional. The stock ended up 2.7 per cent at Rs 584.85 on Tuesday.

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