Hot stocks: Brokerage view on HDFC Bank, M&M Finance and Avenue Supermarts
HDFC Bank. Jefferies also maintains a buy rating on M&M Finance, while Citi remains neutral on M&M Finance. UBS reaffirms its buy rating on HDFC Bank. Additionally, Citi rates Avenue Supermarts as neutral, while Morgan Stanley rates it as overweight, with sell ratings from both Citi and Morgan Stanley respectively.
We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Jefferies on HDFC Bank: Buy | Target: Rs 1,880
Jefferies has maintained a buy rating on HDFC Bank with a target price of R 1,880.
Foreign shareholding in the bank has dropped to 54.8%, which may help with MSCI's review. The drop aids in MSCI's threshold to raise the Foreign Inclusion Factor (FIF) from 50% now to 100%. Further, the bank may be eligible for a jump in index weight at the next review in August 2024, which could be a positive near-term catalyst in stock.
In the medium term, strong deposit growth & improving NIMs should be key drivers.
UBS on HDFC Bank: Buy | Target: Rs 1,900
UBS has maintained a buy call on HDFC Bank with a target price of Rs 1,900.
Foreign headroom for the bank is higher than the Index cut-off of 25%, which makes it eligible for an MSCI Index weight increase. This could also lead to an estimated $3-6.5 billion buying in the stock, partly factored in the recent rally.
Jefferies on M&M Finance: Buy | Target: Rs 294
Jefferies has maintained a hold rating for the stock with a target price of Rs 294.
This is due to the company’s Q1 pre-quarter update on the loan growth
