Hot Stocks: Brokerages on DLF, Tata Steel, PNB Housing and ITC
DLF to outperform while also maintaining an outperform rating on Tata Steel. Morgan Stanley retained its overweight rating on PNB Housing and Nomura has a buy rating on ITC post the demerger. We have collated a list of recommendations from top brokerage firms from ETNow and other sources:CLSA on DLF: Outperform| Target Rs 547CLSA downgraded DLF to outperform with a target of Rs 547.
The housing demand momentum continues, which is positive for the stock. DLF has a strong new launch pipeline for H2. While the demand for non-SEZ offices is strong, SEZ remains a concern.
DLF has re-entered Mumbai with a new project acquisition that is positive. The global brokerage firm raised the target price on account of the Mumbai project.CLSA on Tata Steel: Outperform| Target Rs 125CLSA maintained an outperform rating on Tata Steel for a target of Rs 125. The company reported results that were in line with estimates.
The adjusted EBITDA was driven by income from long-term lease agreements with Tata BlueScope. “We await clarity on — profitability outlook in India and Europe, capex in Europe and the impact of blast furnace relining, guidance on debt, an explanation of one-off income/charges,” said the note.Morgan Stanley on PNB Housing: Overweight| Target Rs 825Morgan Stanley maintained an overweight rating on PNB Housing with a target of Rs 825. Despite adverse seasonality, the retail asset quality has improved on a QoQ basis whereas corporate GS3 was stable.
The global investment bank raised F24-26 EPS estimates by 5-7%. The management is optimistic about its talk with credit rating agencies for potential credit rating upgrades. PNB HF borrows at a cost that is 50 bps higher than that of well-run HFCs and expects to reduce this gap over
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