Tuesday, 31 May 2016

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

 ET Now Brokerage Radar

Citi on Aurobindo Pharma
* Earlier turnaround in EU, better balance sheet metrics augurs well for co
* Maintains Buy, raises target to ₹1,170 from ₹1,050
* Management commentary pointed to continued improvement going forward
* Remains top pharma pick and we reiterate our re-rating thesis
* Scale & breadth of portfolio and cost advantage should help
 
Citi on Tata Communications
* Downgrades to Sell from Neutral, raises target to ₹435 from 400
* Valuation at 6.6x FY17E EV/EBITDA is rich
* Voice continues to see competitive pressure; uncertainty around Neotel
* Voice, Neotel & data center sale dampen data upside
* WC cycle too has deteriorated with change in biz mix
 
CLSA on Sun Pharma 
* Guidance for FY17 is soft, underlines pricing pressure seen in the US
* Increased investment in R&D could keep near-term profitability under pressure
* Lower sales guidance and margin pressure drive 12/9% EPS cut
* Maintains Buy, cuts target to ₹1,020 from ₹1,060
* Medium to long-term earnings drivers are in place with produce filings
 
Goldman Sachs on Sun Pharma
* FY17 guidance for 8%-10% topline growth is below consensus
* Guidance incorporates gGleevec losing exclusivity in Aug 2016
* Lower 2017-19 EBITDA by 9-10% on lower topline guidance, margin commentary
* Maintains Buy, cuts target to ₹900 from ₹975
 
UBS on Asian Paints 
* Building in estimated around 12% volume growth in H1 FY17
* Estimate more than 100 bps expansion in EBITDA margin in FY17
* Given inflationary trends in crude, we est price increases of ~5-6% in FY17
* Increasing our FY17E/FY18 revenue estimates by 4.8/6.2%
* Investments in extending availability could help it maintain its volume trend
* Maintains Buy, raises target to ₹1,175 from ₹1,000
 
Ridham Desai - Morgan Stanley
* Auto stocks occupy a lot of space on our focus list
* Global economic slowdown may weigh on Indian economy for the short term
* Growth in India is turning around, macro economic data indicates the same
* Markets may give positive returns in the next 2-3 years
* See a lot of buildup in infrastructure spend
* See consumption cycle in India revive going ahead
* Short term investment in markets may not deliver any substantial returns

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