Meanwhile, JPMorgan has an overweight rating on Exide Industries and BofA Securities upgraded Infosys to buy.
We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
BofA Securities on Paytm: Underperform| Target Rs 400
BofA Securities resumed coverage on Paytm with an underperform rating and a target price of Rs 400. Lending business growth is gradual, and competition is high in payments.
Earnings recovery and re-rating may be 2- 3 quarters away, said the note. The global investment bank expects Q4 numbers for Paytm to be weak, given RBI action.
It expects the estimates to bottom by Q1FY25 as the full impact of the three-month ban on business would be visible.
Paytm would also have to spend more on marketing/branding to help improve and strengthen its brand positioning in the market.A combination of lower revenue growth and margins would likely push back net income breakeven.The global investment bank now expects Paytm to achieve EBITDA breakeven in FY27 and net income break-even in FY28.
Morgan Stanley on Maruti Suzuki: Overweight| Target Rs 14,322
Morgan Stanley maintained an overweight rating on Maruti Suzuki but raised the target price to Rs 14,322 from Rs 11,228 earlier.
Hybrids are seen as an attractive bridge in the EV transition globally. Hybrid takeoff in India has been slow but this could change.
There is a rise in the news flow on hybrid duty cuts in India which will be positive for Maruti Suzuki. Maruti is best to navigate the current landscape, said the note.
JPMorgan on Exide Industries: Overweight| Target Rs 480
JPMorgan maintained an overweight rating on Exide Industries but raised the target price to Rs 480 from Rs 330 earlier.
Increase the valuation for EXID’s EV battery business from Rs 25/sh to Rs 173/sh. Increase capacity utilization assumption from 70% to 87.5% given the increased confidence post the Hyundai-Kia tie-up.
Exide’s ability to secure a partnership with a marquee global OEM allay most investor concerns.
It suggests further order wins could be on the anvil as the company continues to be in discussions with several OEMs.
BofA Securities on Infosys: Buy| Target Rs 1785
BofA Securities upgraded Infosys to a buy from neutral earlier and raised the target price to Rs 1785 from Rs 1735 earlier ahead of March quarter results.
Making an early case for CY25 demand recovery. Normalization of the post-Covid spike in IT spends could be done by mid CY24.
Meeting Basel III requirements is expected to drive up regulatory tech spends by banks.
SAP upgrade deadline is becoming more of a priority for enterprises amidst the 2027 support deadline.
Transformational IT spending could see an uptick post-US election. Upcoming earnings to provide last cut/floor to CY24E.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
