Brokerage Radar: L&T, Axis Bank & Asian Paints
Morgan Stanley maintains Overweight rating on Axis Bank with a target price of Rs 925 per share. The asset quality outlook is improving but the core PPoP in Q3 missed estimates by ~10%. The impaired loan formation was elevated, it said. The brokerage cut earnings estimates to reflect slowdown.
Credit Suisse maintains Outperform rating on Axis Bank with a target price of Rs 850 per share. The Q3 performance was stable but credit costs remain elevated. We cut EPS estimates by 5-23% on back higher credit costs. The stock trades at 2.1x FY21E P/BV.
CLSA maintains BUY rating on L&T with a target price of Rs 1,730 per share. The global brokerage said L&T's order flow was surprising in Q3, but the execution was weak. L&T Q3 showed diversified portfolio strength and is a good proxy for domestic capex. The company has a credible strategy to improve growth and ROE.
Morgan Stanley maintains an Overweight rating on L&T with a target price of Rs 1,556 per share. The Q3 numbers were below expectations, but the brokerage expects a stronger Q4. The execution challenges are receding and the cash flows should seasonally improve in the next quarter. The domestic prospects for L&T are strong.
Macquarie maintains Outperform rating on ZEE with a target price of Rs 425 per share. At ~13x FY21 PER, ZEE stays our top media pick.
It will be able to better navigate challenges of weak ad-environment going ahead, the brokerage said, and it expects gradual improvement in ZEE’s cash generation.