All You Need To Know Going Into Trade On Aug. 27
Asian stocks posted modest gains Tuesday as the erratic trade narrative turned hopeful, lifting U.S. equities. Shares climbed in Tokyo and Seoul, and were little changed in Sydney. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India
Here’s a quick look at all that could influence equities today. U.S. shares rose after President Donald Trump was positive on prospects for a trade deal and France’s Emmanuel Macron said things were moving forward between the U.S. and China. The S&P 500 Index closed near session highs in a broad-based rally, though volume was almost 20 percent below average. Oil recovered losses and gold was stead
Brokerage Radar
CLSA on Indian Telecom
Sector revenues growing with rising 4G penetration.
Data adoption a long-term revenue driver.
Change in leadership; yet tariff hike uncertain.
Peak capex and gearing behind.
UBS on Apollo Tyres
Maintain 'Buy'; cut target price to Rs 200 from Rs 275.
Expect free cash flows trajectory to turn positive from financial year ending 2022
Indian growth to improve in financial year ending 2021 as capacity come on stream.
Company targeting €1 billion annual revenue in Europe by financial year 2023-24.
JPMorgan on UPL
Initiated 'Overweight' with target price of Rs 700.
Synergies from Arysta to help drive higher than industry average growth.
Earnings execution remains the key for deleveraging over the next two years.
Financial year ending 2020 started as tough year but shows the strength of UPL’s business.
JPMorgan on Oil & Gas
HPCL: Upgraded to 'Neutral' from 'Underweight'; hiked target price to Rs 260 from Rs 220.
Low oil price environment offers marketing earnings stability in HPCL.
Petronet LNG: Upgraded to 'Overweight' from 'Underweight'; hiked target price to Rs 285 from Rs 207.
Petronet’s de-rating on cash deployment worries and competition is overdone.
Petronet offers combination of earnings and cash flow visibility.
Morgan Stanley on Coffee Day Enterprises
Maintained 'Overweight'; cut target price to Rs 140 from Rs 325.
Disclosure on cash and potential asset sale to unlock value could drive material stock upside.
See favourable risk-reward which drives overweight rating
Citi on NMDC
Downgraded to 'Neutral' from 'Buy'; cut target price to Rs 80 from Rs 120.
Uncertainty on mines an overhang; Lower financial year 2020-21 volumes.
See lower ore prices, muted steel demand and shakiness in global prices.
HSBC on BHEL
Upgraded to 'Buy' from 'Hold'; cut target price to Rs 60 from Rs 62.
Continue to see near-term weakness in business fundamentals.
Steep stock price correction coupled with balance sheet strength and long-term potential makes for an upgrade.
source
Here’s a quick look at all that could influence equities today. U.S. shares rose after President Donald Trump was positive on prospects for a trade deal and France’s Emmanuel Macron said things were moving forward between the U.S. and China. The S&P 500 Index closed near session highs in a broad-based rally, though volume was almost 20 percent below average. Oil recovered losses and gold was stead
Brokerage Radar
CLSA on Indian Telecom
Sector revenues growing with rising 4G penetration.
Data adoption a long-term revenue driver.
Change in leadership; yet tariff hike uncertain.
Peak capex and gearing behind.
UBS on Apollo Tyres
Maintain 'Buy'; cut target price to Rs 200 from Rs 275.
Expect free cash flows trajectory to turn positive from financial year ending 2022
Indian growth to improve in financial year ending 2021 as capacity come on stream.
Company targeting €1 billion annual revenue in Europe by financial year 2023-24.
JPMorgan on UPL
Initiated 'Overweight' with target price of Rs 700.
Synergies from Arysta to help drive higher than industry average growth.
Earnings execution remains the key for deleveraging over the next two years.
Financial year ending 2020 started as tough year but shows the strength of UPL’s business.
JPMorgan on Oil & Gas
HPCL: Upgraded to 'Neutral' from 'Underweight'; hiked target price to Rs 260 from Rs 220.
Low oil price environment offers marketing earnings stability in HPCL.
Petronet LNG: Upgraded to 'Overweight' from 'Underweight'; hiked target price to Rs 285 from Rs 207.
Petronet’s de-rating on cash deployment worries and competition is overdone.
Petronet offers combination of earnings and cash flow visibility.
Morgan Stanley on Coffee Day Enterprises
Maintained 'Overweight'; cut target price to Rs 140 from Rs 325.
Disclosure on cash and potential asset sale to unlock value could drive material stock upside.
See favourable risk-reward which drives overweight rating
Citi on NMDC
Downgraded to 'Neutral' from 'Buy'; cut target price to Rs 80 from Rs 120.
Uncertainty on mines an overhang; Lower financial year 2020-21 volumes.
See lower ore prices, muted steel demand and shakiness in global prices.
HSBC on BHEL
Upgraded to 'Buy' from 'Hold'; cut target price to Rs 60 from Rs 62.
Continue to see near-term weakness in business fundamentals.
Steep stock price correction coupled with balance sheet strength and long-term potential makes for an upgrade.
source
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