Hot Stocks: Brokerages view on Indigo, TechM & Yes Bank; Jefferies downgrades BSE

Global brokerage firm Jefferies downgraded BSE, Morgan Stanley maintained an overweight rating on InterGlobe Aviation and Tech Mahindra, and Kotak Securities recommended a sell on Yes Bank.

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

Jefferies on BSE: Hold| Target Rs 2900

Jefferies downgraded BSE to Hold from a buy earlier and also slashed its target price to Rs 2900 from Rs 3000.

Higher regulatory fee limit near-term upside for the stock. SEBI order can impact EPS by 15-18%.

Price hikes could offset ~2/3 of the impact immediately. Improving business quality can fully offset the residual impact over FY25-26.

Morgan Stanley on InterGlobe Aviation: Overweight| Target Rs 4615

Morgan Stanley maintained an overweight rating on InterGlobe Aviation but raised the target price to Rs 4615 from Rs 4145 earlier.The global investment bank believes that Indigo has both a large and sustainable moat. It expects India outbound travel to be the next big theme.The global investment bank sees the domestic plus international market expanding from 221mn airline passengers in FY24 to 370mn in FY30.

Morgan Stanley on Tech Mahindra: Overweight| Target Rs 1490

Morgan Stanley upgraded Tech Mahindra to overweight from underweight earlier and also raised the target price to Rs 1490 from Rs 1190 earlier.

The Q4 results mark the bottom for financials. The management is tangible and quantifiable outlook for FY27 makes it a self-help story.

Even after the April 26 move of 8%, the global investment bank is of the view that the risk-to-reward ratio is favorable for the stock.

Tech M’s cost structure has material room to improve. Revenue growth will take time but key to monitor would be the lag vs. peers.

Kotak Securities on Yes Bank: Sell| Target Rs 19

Kotak Securities maintained a sell rating on YES Bank with a target price of Rs 19. One-offs dominate earnings, but it will be a slow recovery, nevertheless. Most one-offs were used to strengthen the balance sheet metrics.

Business is steadily recovering, and one-offs are likely to continue given the incident. The current price factors most of the positive outcomes.

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

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