Buy Bharat Forge, target Rs 1200 : CLSA
CLSA is of the view that earnings concerns and export issues are now in the price. Over FY18-20, CLSA sees a cyclical recovery in exports along with rising contribution from new business.
By ETMarkets.com | Updated:
CLSA has a buy call on Bharat Forge Ltd. with a target price of Rs 1200 . The current market price of Bharat Forge Ltd. is Rs 938.55 Time period given by analyst is year when Bharat Forge Ltd. price can reach defined target. The company is facing a severe downturn in exports, but the global investment bank believes that earnings will trough in FY17.
CLSA is of the view that earnings concerns and export issues are now in the price. Over FY18-20, CLSA sees a cyclical recovery in exports along with rising contribution from new business. After 21 per cent decline over FY15-17CL, earnings per share (EPS) should rise by about 2.5x over FY17-20, said the CLSA note. The global investment bank sees scope for valuations to expand given the likelihood of strong earnings rebound.
CLSA is of the view that earnings concerns and export issues are now in the price. Over FY18-20, CLSA sees a cyclical recovery in exports along with rising contribution from new business. After 21 per cent decline over FY15-17CL, earnings per share (EPS) should rise by about 2.5x over FY17-20, said the CLSA note. The global investment bank sees scope for valuations to expand given the likelihood of strong earnings rebound.
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