Thursday's top brokerage calls: Cadila Health, CreditAccess, Siemens and more

SUMMARY

Among brokerages, while CLSA has an 'outperform' call on Cadila Health, Citi recommends a 'sell'. CreditSuisse has retained a 'neutral' rating on Siemens. Here are the top brokerage calls for the day:

By CNBCTV18.comAug 12, 2021 9:08:22 AM IST (Published)

CLSA on Cadila Health: The brokerage has maintained an 'outperform' rating on the stock with a target price of Rs 640. The company appears to be in a consolidation phase before the next leg of growth kicks in, however its long-term growth story seems intact given its R&D initiatives, according to CLSA.

Citi on Cadila Health: The brokerage has retained a 'sell' rating on the stock with a target price of Rs 490. The company's Q1 performance was driven by the pandemic, but its near-term outlook looks tough unless the vaccine scales up, according to Citi. The underlying trends are not exciting as the company's topline growth was purely led by Covid in the country, the brokerage added.

Credit Suisse on Siemens: The brokerage has maintained a 'neutral' call on the stock with a target price of Rs 2,100, citing the company's weaker growth and its margin outlook for the gas & power business. Suemens's valuations are high but the earnings trajectory can surprise with strong cyclical traction, according to Credit Suisse.

Jefferies on IndusInd Bank: The brokerage has maintained a 'buy' rating on the stock with a target price of Rs 1,300. Interaction with the company's management has highlighted that the majority of the bank's asset quality issues are from holding company-level loans, according to Jefferies.

CLSA on CreditAccess: The brokerage has upgraded the stock to 'buy' from outperform with a target price of Rs 760. The June quarter was expectedly tough for CreditAccess but the company seems to have taken the impact upfront with its NPA recognition on a 60-day basis instead of 90 days, according to CLSA.

Credit Suisse on Cadila Health: The brokerage has maintained an 'underperform' rating on the stock with a target price of Rs 380. The company's current margin reflects the benefit of lower promotion cost in India, according to Credit Suisse. It also said that 30 percent of the market capitalisation is already being attributed to the coronavirus vaccine but the opportunity is shrinking.