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Analyst Calls: Ambuja Cements,SpiceJet, ICICI Bank, Essel Propack

IIFL has maintained reduce rating on Ambuja Cements with a target price of Rs 198.

ET Bureau|
Dec 06, 2019, 07.26 AM IST
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Antique Stock Broking has maintained buy rating on ICICI Bank with a target price of Rs 575
Good morning!

The domestic stock market on Friday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 26 points higher this morning, signalling a good start for Dalal Street.

As you head for the day’s trade, here is a compilation of overnight analyst calls on various stocks.

• IIFL has maintained reduce rating on Ambuja Cements with a target price of Rs 198. In a recent meeting with the brokerage, the company's management said that demand growth is likely to improve in 2020 and log upwards of 5 per cent. Ambuja Cements expects the rural housing segment to recover, as the monsoon was fairly good this year and higher infrastructure spending by the government with focus on metro rail construction, road construction and PMAY, said IIFL. The stock ended down 1.9 per cent at Rs 201.40 on Thursday.

• JM Financial has initiated coverage on Essel Propack with a buy rating and a target price of Rs 190. For the immediate term, steady recovery in AMESA and East Asia Pacific should help drive earnings growth trajectory, said JM Financial. The brokerage expects expect Essel Propack to deliver earnings CAGR of 17.6 per cent over FY19-22 and scale-up its ROIC to 18 per cent from 12.2 per cent. The stock ended up 1.2 per cent at Rs 149.35 on Thursday.

• Edelweiss has maintained buy rating on SpiceJet with a target price of Rs 160. The brokerage is enthused by the management’s plans to improve profitability and expects significant boost as SpiceJet replaces older 737 NG with 15 per cent higher fuel efficient and lower maintenance cost Max planes in the fourth quarter of FY20. The brokerage expects SpiceJet to overtake IndiGo in passenger growth with takeover of Jet's aircraft. The stock ended down 1.1 per cent at Rs 107.65 on Thursday.

• Antique Stock Broking has maintained buy rating on ICICI Bank with a target price of Rs 575, after the bank's analyst meet. The key message was that the bank is now geared-up to make-up its lost ground by leveraging its best-in class distribution franchise, innovative digital offerings and data analytics, said Antique. The bank is well poised to deliver 15 per cent plus return on equity and structurally this could trend higher, said Antique. The stock ended down 0.3 per cent at Rs 527.90 on Thursday.

• Citigroup has maintained buy rating on Eris Lifesciences and raised target price to Rs 750 from Rs 730, after the company acquired a vildagliptin trademark, Zomelis, from Novartis for $13 million. The brokerage has raised FY21 and FY22 estimated EPS by 2.5 per cent and 3 per cent respectively. Eris is expected to price Zomelis at a slight premium to Tendia, given that it is an established brand and a better product, said Citigroup. Eris expects higher volumes to make up for lower pricing in the first year itself, said Citigroup. The stock ended down 0.6 per cent at Rs 442.40 on Thursday.
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