Hot Stocks: Brokerages on TCS, Sun Pharma, HPCL, ONGC and Oil India

Brokerage firm JPMorgan maintained an underweight rating on TCS, Morgan Stanley has an overweight rating on Sun Pharma and Morgan Stanley has downgraded HPCL to underweight but prefers IOC and ONGC as its top picks.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

JPMorgan on TCS: Underweight | Target Rs 2700

JPMorgan maintained an underweight rating on TCS with a target price of Rs 2700. TCS Q4 missed expectations across the board led by US weakness.

“The global investment bank has cut revenues by 1% & margins by 20bps which led to a 2% cut in the earnings per share (EPS),” the brokerage said.

“The stock is trading at 24.5x 1yr-fwd P/E, a 22% premium to pre-Covid. The demand is weak with no visibility of a turnaround,” it added.

Morgan Stanley on Sun Pharma: Overweight | Target Rs 1170
Morgan Stanley maintained an overweight rating on Sun Pharma with a target price of Rs 1170. The global investment bank cites near-term risks to earnings.

Few key product catalysts are likely in the medium-term in this report. The global investment bank cuts FY23 EPS estimate fractionally and lowers F24 and F25 by ~5% each.

“An EPS cut reflects Halol import alert impact and concert consolidation. An EPS cut is partially offset by new launches (gRevlimid, complex products),” said the note.

Morgan Stanley on Oil Sector: Downgrade HPCL | ONGC, Oil India top picks
Morgan Stanley downgraded HPCL to underweight while it prefers ONGC and Oil India as top picks in the sector.

The global investment bank has cut HPCL's target from Rs 254 to Rs 220 per share. It prefers IOC and downgrades HPCL.

The target for ONGC is placed at Rs 218 per share, and Oil India at Rs 339 per share.

“A benign energy price environment and improved domestic demand are key,” it said.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of Economic Times)