Hot Stocks: Brokerages view on Tata Steel and Dabur India
Tata Steel and Dabur India who declared their quarterly earnings this week.
US brokerage Citi downgraded Tata Steel and slashed the price target on concerns over Europe operations coupled with domestic steel prices.
Meanwhile, Jefferies has recommended a ‘Hold’ rating on the FMCG play Dabur India while CLSA has an outperform stance on the counter.
We have collated a list of recommendations from top brokerage firms from ETNow:
Citi on Tata Steel: Sell | Target: Rs 100
Citi has downgraded the stock to sell rating from an earlier buy and has cut the target price to Rs 100 from Rs 140.
The brokerage highlights concerns on domestic steel prices, Europe spreads and the company's leverage situation.
India steel prices could have downside risk if China prices do not rise, it said in a note.
Moreover, there is uncertainty on restructuring planned and future profitability, Citi said in its post earnings stock review.
Jefferies on Dabur India: Hold | Target: Rs 600
Jefferies maintained a 'Hold' view on the Dabur India counter and put the price target at Rs 600. The brokerage called its Q2 quarter good, led by margins.
Gross margin expansion was ploughed-back through higher ad-spends it said calling the move a right step. Management sounded hopeful on a pick-up ahead, the brokerage noted in its review.
CLSA on Dabur | Target: Rs 609
CLSA has an outperform rating on Dabur, though it cut the target price to Rs 609 from an earlier Rs 640.
Reversal of festive sales impact in Q3 will likely be seen, it said in a note.
Winter and festive season key for H2 revival. Management reiterated an Ebitda margin guidance of 19.5%, the brokerage noted.
