Brokerage Calls: Credit Suisse cautious on NBFCs; CLSA's 'sell' for Vodafone Idea

We have collated a list of recommendations from various global brokerage firms for February 28.

Wipro | Brokerage: Axis Capital | Rating: Hold | Target: Rs 340

The brokerage raised the stock's target to Rs 340 from Rs 320, retaining the Hold rating.

"Divesting Workday and Cornerstone businesses will sharpen the focus on key offerings," said Axis Capital.

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Expect 4.5 percent revenue CAGR over FY18-21, Axis Capital added.

Infosys | Brokerage: Nomura | Rating: Neutral | Target: Rs 680

"Incremental EBIT picture shows growth is coming at a high cost," Nomura said.

Nomura expects Infosys's margins to drop 22.2 percent in Q4, as opposed to 22.6 percent in Q3.

The brokerage said it prefers Infosys over TCS due to better estimates of FY20 growth prospects.

Credit Suisse on financials

Credit Suisse is cautious on non-banking financial companies (NBFCs), including Edelweiss, Indiabulls Housing Finance and L&T Housing Finance, and banks such as Yes Bank.

"Real estate sector NPAs are likely to rise in Q4," the brokerage said in a research note. The lack of funding from NBFCs adds to the pressure from weak property sales.

Vodafone Idea | Brokerage: CLSA | Rating: Sell | Target: Rs 27

Going regional can cutVodafone Idea's debt by 25 percent, and raise EBITDA by 20 percent in FY20, according to CLSA.

"Valuations are highly sensitive to revenue assumptions," CLSA said in a research note.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. First Published on Feb 28, 2019 12:04 pm