Monday, 7 March 2016

Re: {LONGTERMINVESTORS} Research Reports extracts & summaries - Thread


 🔹Credit Suisse on Exide

* Maintain Outperform; target price at `154
* Expect industrial segment to be primary growth driver, with particular emphasis on solar 
* Believe higher capex with technology upgrade will lead to 100-200 bp margin gain
* Believe share in overall replacement segment is driven by gains from unorganised sector

🔹Credit Suisse on Strides
* Maintain Outperform; target price at `1515
* See good start in OTC segment but new products need to be added
* Do not expect large products acquisition given capital constraint
* Jointflex resulted in capital gain of $3mn for Moberg; remains key product
* With large part of acquisition phase behind us; execution to lead to margin improvement

🔹UBS on Coal India
* Maintain Buy; target price at `445
* Dividend payout ahead of expectations; provides strong valuation support
* Dividend reflects strong operational performance, healthy cash position
* Power sector demand can mean some volatility; believe long-term path is clear

🔹UBS on SAIL
* Maintain Neutral; cut target to `43 from `47
* Believe high net debt likely to be drag on valuation for near-term
* See strong domestic position, upside risk from depressed steel prices, govt support
* Improvement in domestic prices post MIP is supportive for mid-term profitability

🔹BofA ML on Siemens
* Maintain Underperform; target price at `654
* Believe that Siemens got fair value for its healthcare segment
* See key reason for sale of healthcare segment as need for global restructuring in healthcare 
* See weak private/public capex outlook in key segments to lead to limited operating leverage

🔹Goldman Sachs on Bajaj Auto 
* Maintain Sell; target price at `2059
* Lower export volume assumptions for FY16E/FY17E by 6%/10% respectively 
* Lower growth forecasts led by sharp currency depreciation, weakness in retail demand
* See increasing competition threat from TVS, Honda, Hero
* High margin exports business appears increasingly vulnerable; sustainable gains remain elusive

🔹Citi on Maruti
* Upgrade to Buy from Neutral; cut target to `4200 from `4465
* New model launches, continued distribution expansion remain key positives
* Expect Capex to peak, cash generation to improve in near future
* Key risks are weak Indian macro, competition from newer models

🔹Jefferies on Yes Bank
* Initiating coverage with Buy; target at `1045
* See expanding corporate book, high fee income, lower credit cost as key positives
* Key driver for next stage of growth will be its ability to build successful retail franchise
* See improvement in risk-adjusted return on assets, delivering shareholder returns
* Building retail asset & liability will be key; execution remains risky

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