Broker's call: Buy on Prestige Estate retained

Nomura has maintained its buy rating on Prestige Estates Projects with a price target of Rs 122 after the company’s third quarter results conference call.

With strong sales momentum continuing into Q4, FY12, after the launch of its first large residential project outside Bangalore, the company has comfortably surpassed its annual sales value guidance of Rs 1,500-1,600 crore in FY12, Nomura said.

With new projects such as White Meadows & Kingfisher Towers likely to hit a revenue recognition threshold of 30% in the next 1-2 quarters, the company expects revenue growth to accelerate.