Hot stocks: Brokerage view on Cyient, Varun Beverages and Avenue Supermarts
JP Morgan maintained an overweight rating on Cyient while BofA and UBS have a buy call on Varun Beverages and Avenue Supermarts respectively.
We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
<div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-112668698»> JP Morgan on Cyient: Overweight| Target price: Rs 2,100
JP Morgan maintained an overweight rating on Cyient with a target price of Rs 2,100.
Cyient is to divest a 14.5% stake in DLM and the proceeds are to be used for semiconductor investments and to repay debt. The M&A could be in semiconductors or also in Auto. Don't expect Cyient to reduce its DLM stake below 51%.
BofA on Varun Beverages: Buy| Target price: Rs 1,840
BofA maintained a buy rating on the stock with a target price of Rs 1,840.
The global brokerage firm said that the business fundamentals remain strong and the stock remains a preferred pick for India consumer as they see good visibility of outsized revenue/earnings growth (20%+ CAGR), which is better than most peers. Earnings growth should support stock valuation. BofA believes that the pullback after Q2 results is an enhanced buying opportunity.
UBS on Avenue Supermarts: Buy| Target price: Rs 6,000
UBS maintained a buy view on Avenue Supermarts with a target price of Rs 6,000.
Channel checks indicate strong demand and a strong store footfall with mid-teens sales growth versus Jul/Aug'23 was seen. UBS sees an increased focus on private labels in grocery and a wider selection in general merchandise with focus on DMART Home range. Trendier assortments in
